Financial IQ October 23 2017

Surprising Things You Didn’t Know Affect Your Credit Score

1. Collections

You may not realize that many of your day-to-day outstanding debts that occur are sent to collections. These third-party debt collectors typically report these outstanding accounts to the credit bureaus, which could show up on your credit report and affect your score. These day-to-day outstanding debts may include things like your utility bill, library fee, medical bills, parking tickets, and even gym membership.

2. Late payment on your taxes

Although having a late payment on your taxes or not paying it at all does not affect your credit score right away, it will later down the road. The Internal Revenue Service may file a Notice of Federal Tax Lien on you if your taxes remain unpaid over a long period of time. This will show up on your credit report and lower your credit score immensely!

3. Applying for multiple credit cards

For all of those times, you’ve considered applying for a credit card to get a 15% off your purchase at your favorite retail store, think again. Your credit report is getting pulled every time for review which leaves a hard credit inquiry* on your record! Even when you don’t get approved for the credit, these inquiries accumulate and affect your overall credit score.

4. Closing your credit card with no balance

Regardless if you have a balance or 0 balance, every time you decide to cancel a credit card, it creates a ding onto your score! One way your score is affected is by lessening your total credit amount, which may increase your credit utilization ratio**. Another way is by shortening the age of your credit history, how long you’ve had your account open for.

5. Having high balances on your credit card

If your account balance is coming close to your credit limit regularly, you may be risking some credit score points! Rule of thumb is to keep your balance below 30% of what your credit limit is. Your score begins decreasing once you pass that 30% threshold. So don’t max out your credit cards!

Looking for a few more tips to build your credit?

4 Habits to Build Your Credit

*Hard credit inquiry: occurs when an individual applies for any type of credit, such as a mortgage, credit card or auto loan. The reason a hard inquiry may lower an individual’s credit score is because someone who has recently applied for a new credit is seen as a potentially riskier borrower. Also called a “hard pull.”

**Credit Utilization Ratio: A number of outstanding balances on all credit cards divided by the sum of each card’s limit, and it’s expressed as a percentage.

  By Hannah Nguyen   Sources: investopedia.com nerdwallet.com thebalance.com

Search Results for query

November 14 2019

Homebuyer Solutions Group Success Story

Marylynn M. and her husband successfully improved their credit scores while enrolled in Eagle Home Mortgage’s Homebuyer Solutions Group (HBSG) program and were able to purchase their dream Lennar Home after graduation. We spoke to HBSG Credit Specialist,...

Read More

November 07 2019

Home Organization Tips to Spark Joy

There is a proven correlation between home clutter and stress. Organizing your abode is a quick and relatively easy way to bring more joy (and extra time) to your life. Here are some home organization tips to help you spark joy!

Read More

October 30 2019

Find the Right Home Loan For You

There are several types of mortgage loans that fit various needs. Here is some information about some of the most popular products and why they might work for you.

Read More

October 24 2019

Reverse Mortgage Myths Debunked

As a senior, age 62 or older, a Reverse Mortgage enables you to tap into the equity of your home and benefit you financially today! The funds you receive can be used to eliminate your monthly mortgage payment, pay off debt, increase your monthly cash flow, or...

Read More

October 17 2019

What to Expect: The True Cost of Homeownership

Most soon-to-be homeowners are prepared to budget for their mortgage payment and down payment, but you should go into your dream of homeownership with a clear picture of all of the costs associated with this milestone.

Read More

October 09 2019

A Simpler Path to Homeownership with Credit Solutions

Interview with Credit Specialist, Sara Gellatly, to learn more about what HBSG is and how it helps real customers achieve their dream of homeownership. 

Read More

October 03 2019

Digital Mortgage 19

Digital Mortgage 19 took place from September 23-24 in Las Vegas. Three of our Executives had the honor of presenting at the conference.

Read More

September 24 2019

Understanding Your Loan Estimate

As part of your mortgage transaction, the Consumer Financial Protection Bureau (CFPB) requires that you receive a Loan Estimate at the beginning of your application process. You’ll receive a loan estimate within three days of submitting your mortgage...

Read More

September 20 2019

Eagle to Attend Digital Mortgage 2019 Conference

The Digital Mortgage conference features keynote speakers, panels, and live demos. Attendees will learn from top mortgage lenders, including Eagle Home Mortgage.

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?