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Are you looking for the best deals on a car? Cell phone? House? Loan? Understanding your credit is an important step to ensure you get the best bang for your buck. Join PCRI’s financial education program for a credit building class that covers a renter’s credit building tool, the ABCs of credit and includes insider tips on how to build credit, even rebuilding badly damaged credit.
When: Wednesday, December 14, 2016, 6:00 – 7:30 p.m.
Where: PCRI Annex, 6601 NE Martin Luther King Jr. Blvd., Portland
Interested in more information about PCRI’s financial education or homeownership programs? Learn more HERE. Additional classes will be offered each month; please check back for more information.
Spending and credit habits can be easily tested during the holiday season: from temptation to overspend on those perfect gifts to discounts offered to open a store credit card. So it seemed to be a good time to revisit some tips shared at PCRI’s October financial education seminar.
Myth: To get a high score, run up high balances on your credit cards.
Reality: Using lot of credit is usually NOT good for your credit risk score. Roughly 30% of a FICO score is determined by a person’s reported debt, with particular emphasis on utilization of revolving credit such as credit cards (utilization = balance divided by credit limit). A rule of thumb is that people with high credit stores typically keep their utilization under 25% on credit cards.
Myth: Paying your credit card bill down to zero every month will boost your score.
Reality: Paying off your credit card is a great habit! You’ll avoid spending money on interest and likely keep your credit usage in the “good” zone. But … this great habit doesn’t necessarily translate into a higher credit score because scoring agencies generally see the balance as of a particular date, not how much is paid each month.
Myth: To raise your score quickly, open a new credit card or take out a loan.
Reality: The FICO score considers a wide variety of information about each reported account. A propensity to open new accounts and a short history on new accounts will likely hurt one’s credit more than help it. But if you take on new credit only as needed and use it responsibly, negative impacts of the new account will generally be offset within a few months.
Myth: To raise your score quickly, close any unused credit cards.
Reality: While it might seem like closing a credit card would help one’s credit score, that’s rarely the case. Having unused or available credit is more often viewed as a sign of lower risk for creditors. And although closing a credit card might be a worthwhile tactic so you don’t have the temptation to spend money you don’t yet have, it likely won’t boost your score (and might actually hurt it).
But you want to improve your credit score. What do you do? Here are the top suggestions from American Reporting Company:
So what are the factors that determine a FICO credit score?
Of course, these are just tips and recommendations. Your credit score considers deeper and more complex factors that just these few bullet points. Luckily, we can help. Join one of our upcoming financial education seminars or call us at (503) 288-2923 to make an appointment to meet with us one-on-one.
For anyone who has applied for a credit card, a personal loan, or insurance: there’s a file about you. This file is known as your credit report. Credit reporting companies sell the information in your report to landlords, creditors, insurers, employers and other businesses with a legitimate need for it. They then use this information to evaluate your applications for a car or home loan, credit card, or even an apartment lease. Having a good credit report means it will be easier for you to get loans and access lower interest rates.
Join PCRI and Kriss Parnell, Senior Loan Consultant at HomeStreet Bank, for this seminar which will help you better understand what goes into a credit report, how it can impact you, and what you can do to improve your report.
When: Wednesday, October 26, 6:00 pm – 7:30 pm
Where: PCRI Annex 6601 NE Martin Luther King Blvd., Portland, Oregon
Interested in more information about PCRI’s homeownership programs? Learn more HERE. Additional classes will be offered each month; please check back for more information.
For more information contact Linda Tellis-Kennedy at (503) 288-2923 or by email. Click the photo at right for a downloadable flyer.