Colorado Springs Vintage Homes Blog
Colorado Springs Real Estate, Colorado Springs Real Estate Investments, Colorado Springs realty
719.287.1049
Buying a Home in Colorado Springs, manage your most valuable asset! Part III
Colorado Springs Vintage Homes is happy to feature a great article
on Managing Your Credit Score – Part III
Anza Goodbar, President of Clearview Mortgage 
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Your Credit and You!
If you’ve been following along with me, you are beginning to see that you have control over your credit score. Let’s continue our journey and look at how the longevity of your open accounts can impact your score.
Longevity of Credit Accounts:
This is a relatively easy category. It has a smaller weight than the other categories we’ve explored. This category basically works by the tracking the length of open credit accounts. The longer time period you keep an account in good standing, the more positive impact the account has on your score. That is to say, an active account open for 5 years will weigh more heavily than an account open for only 5 months.
When scoring, the formula will tabulate your longest accounts, as well as factoring in an average of all of your open accounts. Accounts that are active will score higher than inactive accounts.
Again, keep in mind, the goal of a credit report is to demonstrate your credit worthiness. In order to prove you are an eligible borrower, you must exhibit you have used credit responsibly in the past.
Please do not misconstrue what I am saying. I am not advocating running out and opening multiple accounts. I am simply stating, in order to be approved for a mortgage, you need to have a minimum of three verifiable accounts. If you are just starting to build a credit history, I would recommend getting one or two secured credit cards from a national bank. The credit limit will be established by the account you set up, and after one year of on-time payments convert into a regular unsecured card. Use them for purchases that you would normally pay for by cash or check (i.e., groceries, gas, utilities), and then pay off each account at the end of the month.
Next we’ll find out how your patter of using credit impacts your score.
Previous Posts by Anza:
- Want to buy a home in Colorado Springs, manage your most valuable asset!
- Buying a Home in Colorado Springs, manage your most valuable asset! Part II
Written by Anza Goodbar, President of Clearview Mortgage Have a question? Contact Anza
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
To find out more information about Colorado Springs, Call ……
Kathy (719-287-1049) KTorline@msn.com
