Kenny J

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Looking to build your credit score? Here's some practical tips.

Do you have Good or Bad Credit?? Well if you answered bad, the good news is you can correct it! It all starts with making good decisions.

So buying a new home, new car, maybe applying for you first business loan, well the first step is pulling your credit. Now if you’re looking to purchase that first home mortgage companies will want to see  your mid FICO SCORE. What is a mid FICO SCORE?  This is a score that  mortgage companies will look at to determine if they can approve you for a mortgage loan.

So they will look at your Equifax, Trans Union, and Experience report and take your middle score to see if you can qualify.  Here is an example:

(Equifax 736)      (Trans Union 727 )        ( Experience 748)  Under this example your mid score would be 736.   Now in most cases FHA Loans requires a 620 

Now some banks may have overlays which may require a higher score like a 650

Here are some tips that can help you on your journey to good credit.

  1. Make all payments On Time.
  2. Keep Your DTI (DEBT TO INCOME) LOW.
  3. Keep all debt at 7% or lower

7 Best Ways to Build Good Credit

A credit card isn't a permission slip to buy things you can't afford. Overusing a credit card is the quickest way to get into debt and credit trouble. The best way to build good credit is to create the habit of charging only what you can afford.