Credit Score: What It Means and How to Improve It

 

credit score blog

Where does your credit score stand?

 

Are you considering making a major purchase, like buying a home, this year? If so, your credit score will likely come into play. An understanding of the basics can help you effectively monitor and manage it.

Credit Score 101
Your credit score will usually range from 300 to 850. It’s derived from an algorithm that takes into account several factors, including payment history, the total debt owed and length of credit history.

Lenders use this three-digit number to predict risk and the likelihood that you’ll repay your debt on time. The higher your credit score, the less risk you are and the lower your loan terms will be. For example, a person with a “good” credit score of 700 may have a lower interest rate and smaller required down payment than someone with a “poor” credit score of 400.

How to Improve Your Score
If you don’t have much credit history or you have a few negatives on your report, consider these strategies to increase your score.

  • Pay all of your bills on time. Late payments can negatively impact your score.
  • Pay off debt where you can. The less debt you have, the lower your debt-to-income ratio.
  • Keep your credit card balances as low as possible, aiming to use no more than 30 percent of your available credit. And pay off as much as you can each month since higher balances can sink your score.
  • Review your credit report at least annually, and keep an eye out for mistakes and identity theft.

 

Keystone Realty Group
CU Financial Group
EMAIL info@keystonerg.com
Phone 281-476-3555
ADDRESS 1095 League City Pkwy League City, TX 77573

Step-by-Step Guide to Creating an Emergency Binder

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How to Be Prepared for an Emergency

 

Do you know what vital information to have on hand in the event of a natural disaster or family emergency? When an unexpected situation arises, there’s no time to sort through paperwork, no matter how essential it may be. Having everything you need in an organized emergency binder can streamline the process and give you peace of mind.

What to Include in an Emergency Binder
While there’s no shortage of important family documents and household records, a true emergency calls for a few must-haves:

  • Vital records like birth certificates, driver’s licenses, Social Security cards, naturalization documents, passports and child custody papers.
  • Insurance policies, including homeowners, renters, auto, life and health.
  • Property records such as real estate deeds, rental agreements, and vehicle titles and registration.
  • Financial documents like wills, trusts, powers-of-attorney and funeral instructions.
  • A family emergency plan with contact information and predetermined meeting places.

Safely Storing Other Important Information
Some items, such as account passwords and a backup of critical computer files, aren’t suited for a portable binder. Instead, house them in a secure location like a safety deposit box or lockbox. You can also include a home inventory list, contracts, business paperwork, tax returns and investment records.

Play it safe and include a recent photograph of every family member, along with fingerprints and dental records. You may also want to store valuable memorabilia, jewelry, and priceless family photos, letters and documents here as well.

There’s no way to predict when misfortune will strike, but that doesn’t mean you shouldn’t be prepared. Set aside an afternoon to create an emergency binder that can help protect your family when time is of the essence.

 

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