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Category Archives: Credit Sense

Mortgage Shopping? Read This.

We hear it often from those looking for a home loan to buy, build, refinance or renovate. You want to find the best deal out there, but are concerned that your credit report can’t handle all those hard inquiries. While it is common knowledge that credit inquires may hurt your credit score, that’s not necessarily the whole story. A recent article from the Washington Post took on the subject and dispelled the myth of the hard credit inquiry – which is great news for first time home buyers and those looking to refinance The credit report bureaus use “shopping windows” to allow time to search for their best option. These shopping windows typically last 30 days. Credit inquire within the… Read the full article.


Tips for Closing a Credit Card Account

If  you are thinking about closing a credit card, the first thing you should consider is your personal financial situation. As we talked about in previous blogs, closing a credit card account will most likely have an impact on your credit score. If you already have a stellar score and you close one account, you’ll likely still have a high enough score to qualify for good rates, even if it does take a temporary dip. The same is true if you have very poor scores—if you close one account, your score will still simply be considered “poor,” but you’ll have one less credit card to rack up debt. Make sure you also consider how much you use the account, how… Read the full article.


Do or Don’t? Closing a Credit Card

To close or not to close? You are likely to hear ranging opinions over this age-old credit card debate. Some say it will ruin your credit, while others advise to close accounts you don’t use to avoid temptation. Credit scores and the way they are calculated can be confusing, so it’s important to know how your actions affect your score before you take them. Only then can you decide whether closing an account will help – or hurt – your score. Effect on Credit History Length of credit history is one of the five categories that FICO uses to evaluate your score. Contrary to popular belief, closing a card doesn’t immediately shorten your credit history length. Closed accounts actually stay… Read the full article.


Debt to Income Ratios Explained

Your credit score is not the only factor lenders consider when you’re applying for a mortgage. Your debt to income ratio (DTI) also plays a major role in the credit decision. Though your DTI does not directly impact your credit score, it is a strong indicator of your financial health and credit worthiness. What is a Debt to Income Ratio? Your DTI is exactly what it sounds like – it’s your total monthly debt divided by your total monthly income (gross income before taxes and other withholding). The debt side of the ratio factors in: – Your proposed monthly housing payment (including 1/12th of annual insurance and real estate taxes) – Credit cards (minimum monthly) – Car loans – Student loans… Read the full article.


How Healthy Are Your Finances?

  Are you making the right financial decisions? Do you know where to invest? Do you know how fast to pay off credit card debt or student loans? Are you saving for retirement? Will you ever qualify for a mortgage? It’s perfectly okay to not have all the answers to your personal finance questions. Between credit card debt, student loans, and saving for retirement, it’s easy to think homeownership will never happen. In reality, the journey to homeownership starts with a little knowledge and equal parts smart money decisions and frugal living. You can have your home, and live in it too! We’re here to help you make smart money decisions on your way to becoming a homeowner. That’s why were… Read the full article.


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