Hope Leitner, Realtor®, CRS

Credit scores are used to assess risk and determine whether a borrower is approved or declined for a mortgage, credit card or some other type of credit.   The score is a numerical value ranging from a low of zero to a high of 850 or 900 depending on the credit bureau. The higher the score, the more likely the lender will be repaid in a timely manner. A higher credit score could help you get a lower interest rate You can get a free credit report from all three major bureaus at www.AnnualCreditReport.com . Your credit score doesn't have to be perfect to get a loan ... most lenders want buyers to have a minimum of 620 but FHA will consider as low as 500 Credit utilization, the percentage of credit used compared to what is available, should be kept below 30%; amounts higher could negatively affect your credit score. There is a difference between a soft and a hard credit pull.   The former doesn't hurt your score, but the latter can lower it a few points.   Try t...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties The Benefits of a Hardship Plan If you’re buried in credit card debt, there’s a reasonable solution that your credit card company may allow you to use, but only if you ask about it. A hardship plan, also known as a credit card payment plan, can help dig you out of debt and ultimately improve your credit score. A hardship plan can also save you money in interest payments and reduce your monthly credit card bill. Don’t be scared if you think a hardship plan is the same thing as the debt management plans you see on TV commercials. Those require you to pay a fee to a credit counseling agency to negotiate debt repayment terms with each of your lenders. All of the debts are paid through a single monthly payment that the counseling agency collects from you. The credit counselor is the liaison between you and your debt collectors. A hardship plan, however, doesn’t have an intermediary or m...

  Information is brought to you by Hope Leitner Berkshire Hathaway HomeServices California Properties How to Freeze Your Credit for Free To stop a criminal from using your personal information to open a credit card in your name, start by preventing lenders from checking your credit unless you first unfreeze your information. Even if you have poor credit—or are low on savings—protecting your credit from identity theft by taking advantage of a free credit freeze is a good idea. Thieves can steal your personal information (i.e., Social Security number, driver’s license number and birth date) and create new identities to fraudulently get loans and open credit card accounts in your name. A credit freeze prevents lenders from checking your credit in order to open a new account. So, if a criminal has your personal information and tries to open a credit card in your name, a credit freeze will stop the lender from checking your credit. If you have a credit freeze in place, you must remove i...