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-- -- you know it's definitely a buyer's market if you're looking for a home but before we -- house hunting you know your credit score is.
You -- plenty -- -- straight your credit score and lower your mortgage rate I -- pay less money on your mortgage.
You're tells how to do -- John Alzheimer from credit dot com great to see you right here in front of me in the -- best you have to.
So let's walk through this one of the things I need to do what I'm getting ready to like that market.
It's we'd do two things -- -- need to be sure to pay off or down as much credit card debt as you possibly can't you can't pay it off completely.
Pay it down as much possibly can't second stay out of the market don't go charging new things and don't call applying for new things because there's a new -- you -- rule that allows mortgage lenders.
Actually demands mortgage lenders to pull a second set of crap reports just before closing so there is no hiding any new debt that you -- on -- I prostitute cheating -- OK yeah I'm -- what about closing up old accounts I know people do that.
You know -- this is dispelling credit and myths.
You should never have a close credit cards period if you're afraid of identity theft run them through a shredder -- leave them open.
When you close a credit card account you're taking away -- be available credit also called open -- by credit scoring models love to see a lot of available credit.
When you close a lot a year it's not a lot of balances but a lot of credit you don't lose the age of the car that's a math but you definitely lose the open to -- of the card.
So what is open to buy the unused credit when it okay -- -- that makes sense to me.
So you also opening but not using accounts as you were just saying well will help your score itself certainly -- I have more existing credit out there and I'm not using it that's all good -- very counter intuitive a lot of people think that the more available credit you have the more risk you are actually the exact opposite the -- -- credit cards and sent.
Bullish on credit card I'm not -- some credit carbon content still on the fence.
If you use them fine just don't use them to the point -- using them as income used in front and a method of convenience which is what they were designed for Italy where common sense right credit one on one.
Dispute letters to they work.
Dispute letter should credit reporting agencies work if the -- according agency either drops the ball and doesn't have a process -- within thirty days -- the item can come lawful order the item is in fact an accurate.
Numbers to the bank got bought out or they failed with a lot of them are doing these day if they can't bare body -- on the credit report.
Within thirty days it's gone nice okay.
So people are always worried about credit -- how that impacts your credit score -- like I'm afraid to ask for my credit Erica I'm worried it'll hurt my score.
Your school or -- acted -- You getting your own sport has not had any influence at all over your credit score at all you giving -- credit reports has no influence at all.
That's not the type of inquiry that's problematic.
The type of inquiry that's problematic as the -- -- it leads to new debt.
Credit cards mortgages auto loans if you have to apply for something for God's sake people applied for after your -- -- as the coupon at the mall for 10% off because in your loading up on a lot of little inquiries.
That can cost you.
-- -- number I really aiming for I think people think I want that perfect credit score you do not need to perpetrate a swarm the proper credit -- does not exist in my nineteen years I've never seen anybody with an 815 you don't need an 850.
Even in today's credit environment if you're 750 or above.
You're getting the best deals that anyone has to offer and the deals today are fantastic.
Fantastic for the people with the best -- -- and that's the way it should be -- of people perhaps the best credit risk should get the best deals if you could say one thing the people out there today were applying for a mortgage worried about their credit what would you say it's got to -- to debt it's targeted credit card it's the actionable way of improving your -- pay off your credit cards and much you can.
Put him on the sidelines and you close and then you can start using them again and then you'll have discipline and you'll be using it and that will help in the long run -- it's the magic formula.
-- thank you so much John for being here really great -- in the flash likewise thank you can't.
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