**
What can I do to improve my credit score?

What can I do to improve my credit score? - Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change. Credit score improvement generally depends on how that factor relates to other factors considered by the model. The credit reporting company can explain what might improve your score under the particular model used to evaluate your credit application.

Nevertheless, scoring models generally evaluate the following types of information in your credit report:

-Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
-What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.
-How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances.
-Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at "inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted.
-How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.

Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.

To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. Its likely to take some time to improve your score significantly.

One of the best things to do in a short amount of time is to increase your credit limit to drop the balance to limit ratio down to a lower percentage. Just make sure you are responsible and do not spend the extra credit.

Improving your credit rating generally comes down to 3 basic components :

-pay your bills on time. Get your credit commitments current and STAY current.

-pay down credit card and other revolving balances. Your score will dramatically improve if you keep your balances on revolving debt under 50% capacity.

-pay off judgements and collections. Paying in full or settling outstanding collections will raise your score and show creditors you do at least eventually repay debt .

There is no 'quick fix' to noticably raise credit score. Making a solid budget to accomplish the three major components over time will pay off dividends for the long term.

There are different types of 100% loans. You can either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage professional to see which program is best for you!