Understanding your credit score

To improve your credit score, which reflects your credit payments over time with more emphasis on rent information, follow some of these guidelines:

-       Pay your bills on time because delinquent payments and collection will have a major negative impact on your credit score.

-       Keep balances low on credit cards and other “revolving credit.”

-       Apply for open new credit accounts only as needed Do not open accounts just to have a better credit mix.

-       Pay off debt in contrast to moving it around. Do not close unused cards as a short-term strategy to improve your credit score. Owing the same amount but having fewer open accounts may lower your credit score.

First, minimize outstanding debt, then avoid overextending yourself and refrain from applying for credit needlessly.

Credit scores are based on the information found on an individual’s credit report and any change to the credit report could affect the individual’s score. Once change affects many items on the credit report so it is impossible to provide completely accurate assessment of how a specific altercation will affect a person’s credit score. Therefore, credit risk factors provided with your score are very important because they identify what elements from your credit history are having the largest impact.

The length of time to rebuild your credit history after a negative impact depends on the reasons behind the change. The most negative changes are a result of the addition of a negative element to your credit report, such as a delinquency which will remain on your credit report for seven years. Inquiries remain on your credit report for two years. Some bankruptcies may remain for 10 years and unpaid tax liens remain for 10 years.

For more information about improving your credit score to purchase a Chino Hills home, contact Erika Shinzato, top real estate agent in Chino Hills (91709) and surrounding areas at (714) 485-3998.