The Credit Score Puzzle, Part 1
February 22, 2008 Your payment history has the single largest impact on your credit score -- 35% of it. Worse yet, dealing with your payment history may seem counter-intuitive.
For instance, you may have an outstanding judgement that is several years old -- it was never paid off, but there has been no activity on the account for years. In preparation for getting a mortgage, you decide to pay off the judgement and oops! You just made your credit score worse, because now that judgement shows as a current account, not an old one.
The best thing to do is to meet with a lender before attempting to clean up your credit. Trying to do the right thing may just end up being the wrong thing when it comes to fixing your credit.
Why does your credit score matter? It is the major factor in determining your interest rate and fees. It even may determine your minimum downpayment -- both translating directly into cash needed at closing and cash spent each time you pay your mortgage.
The take-away? If you're within 3 months of getting a mortgage, don't apply for, pay off, or close any loans or credit cards without speaking to a mortgage professional first.
(C) Susan Pruden.
A lifetime Maryland resident, Susan Pruden has the ideal foundation for selling and buying homes. After 8 years working in just about every facet of the mortgage industry, and several years with her own company specializing in marketing for real estate agents, Susan got her real estate license in 1994. Susan has earned several industry awards. The CENTURY 21 Quality Service Pinnacle Award is based on reviews from Susan's clients and is earned by a very small percentage of agents. She has earned that coveted recognition since 2012
Two others were awarded by the Prince George's Association of REALTORS®. The Distinguished Sales Associate of the Year Award is based on a mixture of community involvement, association involvement and real estate education and designations. The other, the Distinguished Service Award, is for "exceptional meritorious service."
Susan is involved in her local community. She was named Cheverly Volunteer of the Year in 2018, even having June 25th designated "Susan Pruden Day" in the Town of Cheverly. She is also a Commissioner on the Prince George's County Historic Preservation Commission and President of the Cheverly American Legion Auxiliary.
Susan Pruden has lived in Cheverly lived with her husband, Joseph, for almost 30 years.
