Hawaii’s Tangee Lazarus, REALTOR(c), here. I want to share some of what I have learned about credit. You need the best possible credit score when you are looking for a home. I have learned:
*paying off all of your credit card debt is wonderful BUT, there is an unexpected risk. I paid off all of my credit card debt by taking some money out of savings. It was costing me more to carry debt with interest than I could make up by saving. I wiped out the debt. My credit score shot up by about 100 points almost immediately. I kept my purchases well under the recommended 30% of available credit. I was proud to use only 3% of available credit
Imagine my horror when I saw my credit score plummet by almost 40 points, practically overnight. Why? I went from using 0% of my available to using 3% and that was viewed as a reversal of progress!
What I do now is, I pay off my debt, and leave a little bit of debt in place so I can consistently make progress. The truth United States, if you go from using 30% of available credit to 20% of available credit, your score will be positively impacted. If you go from using 1% of available credit to 3% of available credit, your score will be negatively impacted.
Is this reward system a set up by the powers that be to keep us in debt? I don’t know. Is my perception wrong? Please correct me! I am open to anyone which has the inside scoop in what we need to do to get a number attached to our name that makes it possible to have more in life. Including a home!
Disclaimer: I am not a banker. I am not giving advice , or telling you what you should do. I am simply sharing what has happened for me and to me. Your experience may vary.
Tangee Sells Hawaii Homes 