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Buyers Should Take Five Steps to Financial Fitness - 2009-10-11
Whether you are buying a house or not, you are affected by your credit score. More so than ever before, your credit score determines the rate you will pay for your home mortgage loan. In Atlanta, lender Peter Berk of Bank of America says most borrowers seeking thirty year financing will pay one-eighth percent less on their interest rate if their credit score tops 720.

While that seems a small difference, it adds up to more than four thousand dollars over the life of the loan. In addition, if your score is below 620, it may be difficult to obtain home financing at any rate.

To help boost your credit health, follow these five tips:

* Pay your monthly bills on a timely basis.

I know this sounds very basic, but paying "on time" is vitally important to credit grantors. They believe how you have paid in the past is a strong indicator of how you will pay in the future.

Your payment history makes up about 35 percent of your credit score, and it comes directly from information on your credit report, so pay your bills early and check to make sure none are late - ever.

* Keep accounts open to build longevity.

Closing one account and opening another looks to creditors like you are churning your credit, and it alarms them. Instead, keep unused accounts open by using them at least occasionally. The length of your credit history accounts for about 15 percent of your score, so strive for long-term relationships with quality merchants and institutions.

* Don't overuse your revolving credit.

In fact, it's best to keep your credit card balances below 25 percent of your limit at all times, even if you pay it off in full every month.

Carrying a balance above 50 percent of your limit indicates to creditors that you may be living off your credit card during a difficult financial time. Keep your utilization percentage low and ask for increased limits if you need to. This factor makes up 30 percent of your credit score.

* Take it easy on new credit requests.

Each application you make generates a credit inquiry, and too many inquiries signals the bureau that your circumstances may have taken a turn for the worse. This factor makes up about 10 percent of your score.

* Try to keep a healthy mix of credit types.

A mix of active credit cards, retail accounts, installment loans, and mortgages would indicate a prudent use of credit in your financial life.  Overuse in any one area could indicate a credit dependence. This area accounts for the final 10 percent of your score.

Remember that your credit score only looks at information contained in your credit report. That's why it is so important to make sure your information is accurate. For more information, visit myfico.com.
 
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Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

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One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

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