TEXAS FIVE STAR REALTY

Info@TexasFiveStarRealty.com

 
214-457-7055

 

 

Texas Real Estate Commission Information About Brokerage Services                       Texas Real Estate Commission Consumer Protection Notice

Dallas homes for sale, Plano homes for sale, Frisco homes for sale, Prosper homes for sale, Allen homes for sale, McKinney homes for sale, Murphy homes for sale, Celina homes for sale, homes for sale

Home

About Us Buyers Sellers Investors Commercial Relocation Contact Us Lenders Inspectors Titles
Builders Vendors PlaceHolder
Search Properties
Find Your Home's Value
Local Market Snapshots
Local Real Estate Trends
National Market News
Foreclosure vs. Short Sale
Dallas FW City Directories
Dallas FW School Ratings
Dallas FW City Tax Rates
Estimate Closing Cost
Mortgage Calculator
Mortgage Amortization
Green Tax Credit
Types of Loans
Relocation to Texas
Customers vs Clients
Repair Cost vs Value
Rent vs Buy Calculator
Your First Home?
My Blogs
Testimonials
Test Your R. E Knowledge
  Property Management
Open House Manager Tool

Revolving and Installment Types of Credit and their impacts on your credit score

1.     Types of Credit and their impacts on your credit score: 10% of your credit score

There are two basic types of credits: Open-ended (Revolving) and Closed-ended (Installment). Each type has different effect on the credit score. They make up 10% of your credit score:

Open-ended Credit (Revolving): MasterCard Credit CardVisa Credit Card

Revolving Credit Refers to a credit, up to a specified limit, made on a revolving basis for the purchase of products. Bills are issued monthly to the borrower for a total balance charges which are usually a portion of the credit. The borrower has a choice to pay an amount from Minimum Payment Required to the full Balance within a couple of weeks. Credit Cards (MasterCard, Visa, American Express, Discover Card, etc.), Store Charge Cards (Macy’s, JCPenney, Sears, Gas Cards, etc…), are examples of Open-ended or Revolving Credits. These cards usually carry a high interest rate.

Closed-ended Credit (Installment): Buying a house is Installment Credit   Buying a Car is Installment Credit

Installment Credit Refers to a credit for a specific amount, made for the purchase of a specific product, usually large items, such as home, car, boat, major appliances, etc. The payment period, number of payments and payment amount for each period are fixed. The borrower cannot pay less than specified payment amount for each period. These loans usually carry a low interest rate and are for a longer period of times.

TIPS:

·         Closed-ended Credit (Installment) payment history, especially Real Estate accounts have much more impact or weight on your credit score than Open-ended Credit (Revolving) payment history.

·         Repossession, Foreclosures and Short Sales in Real Estate Accounts have major negative impact on your credit score, much worse than unpaid cared card balances. Try to avoid them and work it out with lenders as much as possible.

Therefore, if you have only enough money to pay your mortgage payment OR pay the minimum balances on your two credit cards, your first choice should be paying the mortgage payment first and pay the credit cards after.

·         Don’t carry a large number of credit or store charge cards. Interest rates are high and scoring models looks unfavorably on them.


To find out more about your credit score and how to get a free copy of your credit reports, or find out about credit scores in general and tips on how to improve your credit score, please see one of the appropriate articles from following:

What is a credit score,

What makes up a credit score, Tips on how to improve their credit score,

What impact they have on your Interest rates & why they are important,

List of Do’s and Don’ts they should do before applying a mortgage loan

List of Do’s and Don’ts after being approved for a mortgage loan.

If you are buying a house soon, don't open a new charge card

Contact us about your Credit Score Questions

Equal Housing Opportunity Commission Bahman Davani REALTOR

Bahman Davani, CM
Broker/REALTOR®
ABR, GRI, CDPE, SFR,
TAHS, eAgentC, and
CCIM Candidate

Office: (214) 457-7055
Cell: (214) 457-7055
Fax: (972) 596-7984

P.O. Box 261665
Plano, TX 75026-1665

Contact Form

First Name Required*

Last Name
 

Email Address Required*
 

Phone Number
 

Comments/Questions


Enter the code above                  

Texas Five Star Realty
P.O. Box 261665
Plano
, TX 75026 US
Phone: 214-457-7055
Website: www.texasfivestarrealty.com/
Follow ME button from AddThis
Follow US:

Share, Pin and LIKE This Page:
    Share this page in Facebook 

My Blogs:
Subscribe to Bahman Davani Blogs RSS See Bahman Davani Blogs See Bahman Davani Blogs in ActiveRain See Bahman Davani Blogs in WordPress Texas-Five-Star-Realty-Manta-Badge See Bahman Davani Blogs in SlideShare See Bahman Davani Blogs in Zillow   See Bahman Davani Blogs in Klout See Bahman Davani Blogs in Plaxo See Bahman Davani Blogs in Blogger

My Real Estate Designations and Certifications:
Bahman Davani REALTOR Bahman Davani Commercial REALTOR Bahman Davani ABR Designation Bahman Davani GRI Designation Bahman Davani CDPE Designation Bahman Davani SFR Shortsale Forecolsure Resource Certification Bahman Davani TAHS Texas Affordable Housing Specialist Certification Bahman Davani Inbound Marketing Certification Bahman Davani Certified Manager from Institute Certified Professional Managers Bahman Davani eAgentC Internet Profficiency Certification Bahman Davani NMLS RMLO Residential Mortgage Loan Originator License Bahman Davani TRLP Texas Real Estate Leadership Program Graduation Send Texas Five Star Realty Text via email

Additional Resources and Newsletters:
Texas Five Star Realty website Mortgage News Daily from Texas Five Star Realty website Bahman Davani Credit Score Tips and Tricks book published by Texas Five Star Realty Bahman Davani Credit Score Tips and Tricks book published by Texas Five Star Realty          


. Copyright 2011-2014 Texas Five Star Realty Web Site Developed by We provide a fast and easy solution for your business. .