What are the factors that impact your credit score?

1. Payment History 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.

2. Outstanding Credit Balances 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, you should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.

3. Credit History 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. Type of Credit 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.

5. Inquiries 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower credit score. Note that if you run a credit report on yourself, it will have no effect on your score. Call Luchechko Team for more information on how we can help you to better your credit score before you decide to get that mortage.

We’re already into cold weather season, but it’s never too late to ensure that your house is protected in winter temperatures. We’ve pulled together some helpful tips to help you prepare for freezes, snowstorms, or other adverse conditions.
    Prepare the Inside of Your Home
Getting your home ready indoors for colder temperatures will not only keep you and your family more comfortable this winter, but also help prevent expensive, inconvenient repairs.

    Get your HVAC system ready.

It’s wise to have your heating and cooling system inspected by a professional twice a year – in the fall and in the spring – to keep everything running smoothly. Many HVAC service companies will put you on a biannual service program, so you don’t have to worry about remembering.
Clean out your chimney and fireplace.
Soot and ash from previous seasons can clog your fireplace and chimney, and create dangerous conditions that could cause a fire. Protect your family and your home by purchasing a chimney cleaning kit, or hiring a professional chimney sweep.
Take care of your pipes.
Cover any pipes that are in danger of freezing, such as those closest to your outside walls, with pipe insulation to help prevent them from bursting.

When temperatures drop drastically you can also run a slight trickle of water in each of your faucets to keep water moving and lower the chances of the pipes freezing. This is an especially important trick to remember if you lose power and heat, which increases your chances of frozen pipes.

   

    When seeking a loan, one of the most important factors taken into consideration is your credit score. Many things can affect your credit score, including your credit history, the amount you owe, and your mix of credit.

Credit inquiries are a point of confusion for many borrowers. There are both hard and soft credit inquiries. Credit inquiries have the potential to affect credit score, so it is wise for borrowers to understand the differences between the two types of inquiries. Credit scores are a key part in how lenders determine credit worthiness and the cost of a loan for the borrower.

If you’ve ever questioned opening a new credit card account because of the inquiry to your credit, or wondered how your credit score would affect your home mortgage loan.
One of the oldest and most commonly-used credit score brands is FICO. According to FICO “A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay a loan. This, in turn, affects how much you can borrow, how many months you have to repay the loan, and how much it will cost (the interest rate).

What does this mean for you? In essence, your chance of getting a loan that fits your needs is reliant on your credit score – a higher score shows that you handle credit well, which can improve the terms of your loan. Scores typically range between 300 and 850.