NYC Real Estate – Tip on Credit

–          New late payment can drop scores over 100 points.

–          Grace Periods vary – not all lenders have them.

–          Short sales are usually reported as “Settled for less full than full balance” on reports. This could drop score over 100 points.

–          Bankruptcy remains on credit for 10 years.

–          Any collection account, even if it is for $10.00, can reduce your score over 100 points.

–          Most negative information remains for 7 years

–          Good closed credit can be removed after 2 years.

–          The higher your FICO score the more the score will reduce when new derogatory information is reported.

–          Joint accounts report delinquency on both credit holders’ accounts.

–          Not all credit scores are the same.

–          FICO Score – (Fair Isaac Company) is the most popular score used by mortgage banks.

–          Plus Score – sold by the credit bureaus to consumers for educational purposes can be up to 50 points higher than FICO.

–          Vantage Score – sold by the credit bureaus to compete with the FICO score, uses numerical and letter grades. Vantage score can be up to 200 points higher than FICO.

–          Some lenders use Vantage score but the majority don’t.

–          Other score offered online are Equifax and Credit Karma score.

–          Revolving credit is any credit that consumers can change up to the limit and pay the minimal amount. If there is no limit it is still revolving if the consumer can decide to make minimum payments.

–          Installment credit is any loan, other than mortgage, that has the same monthly payment throughout the life of the contract.

–          Seasoned credit (over 2 years old) is excellent for the scores.

–          The older the age of the account the better it is for the score


By North Shore Advisory – A credit Education& Restoration Company – The Credit Specialists – Tracy

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