Now is a great time to buy a Phoenix area home with very low interest rates on FHA, VA or a USDA loan

I have started the day by floating.  Mortgage rates are bumping against their best since last Spring; both the mortgage driver 10 yr note and mortgages themselves are overbought in the near term; susceptible to selling. The longer outlook remains constructive, the short view slightly bearish. Note; we are changing the time we post for mortgage prices frm 10:00 to 9:30, lenders are pricing earlier these days.

The bond and mortgage markets opened a little soft in early trade this morning; the 10 yr at 8:00 -4/32, mtgs -2/32, the DJIA futures index +70. At 8:30; mtgs -1/32, 10 yr -4/32 and DJIA +65. At 9:00; mtgs -1/32, 10 yr -4/32 and DJIA +61. At 9:30 the DJIA opened +73, 10 yr note -3/32 and mortgage prices at 9:30 -2/32.

No economic data to think about today; rate markets will focus on this afternoon’s (1:00) $39B 3 yr note auction starting three days of Treasury borrowing. The equity markets had a strong day yesterday with the DJIA +112 and S&P +15, starting stronger again today.

Yesterday we reported that Obama is considering another stimulus plan to try and lower the unemployment rate. This morning we hear Obama is considering extending the first time homebuyers’ tax credit and increasing spending in the transportation sector. Won’t be labeled as another stimulus plan of which only 40% of the $787B has been used; taxpayers and consequently the Congress are not in the mood for more government spending that has gotten completely out of hand. So the slight of hand is tax cuts and increased spending; in any other language but government it is more stimulus with only the name changed to protect the guilty.  Administration officials have told allies in Congress that a broader transportation bill, and extensions of a homebuyer tax credit and unemployment benefits are all on the table.

Get started on an Arizona FHA, USDA or VA loan.

A few days ago, at the end of Sept the government fiscal year ended for 2009. Next we will get the 2009 fiscal deficit, the CBO is saying $1.6T with 2010 deficit at $1.4T. It wasn’t more than three years ago the deficit was just $300+B. Much of the exploded deficit was used to save the financial system; it had to be done but probably not to the massive extent the panic required. Congress led by the likes of Barney Frank have little desire to cut any spending programs, actually increasing them where it isn’t necessary other than to be re-elected. Yesterday Frank said he wants to use $2B of TARP loans that have been re-paid for more spending. The price America will pay in the future for the spending now will be high interest rates, likely approaching 8.0% for mortgages by 2011. Don’t worry, be happy; let the next Congress gag on it—-how Congress and administrations think.

Hardly a week goes by without talk of the demise of the dollar as the world’s reserve currency. Today reports of Mid-East oil producers looking to other currencies as payments for oil exports. Oil has always been settled in US dollars. The exploding deficits, the conviction the US does not have the stomach to cut spending, the Fed keeping interest rates low, and foreign investors drowning in dollars are issues that will not easily be ignored much longer. For now however, it is mostly chatter but the rumors are increasing. Every rumor so far has been vehemently denied from the sources.

Australia raised its interest rates by 25 basis points this morning; suggesting their economy is rebounding faster than the US. IN fact most of the world is coming out of their recessions more rapidly than what we are doing here.

The rest of the day will center on this afternoon’s $39B 3 yr note auction and the equity markets that have no intention of rolling over.

Get Started on Arizona Home Loan.  FHA and VA loan rates with a 720 credit score are sitting at 5.125% this morning! USDA loan rates are at 5.375%

Get started on an Arizona FHA, USDA or VA loan.

Given the huge double barrel shock to the equity bulls; the Chicago PM index and the ADP employment estimate, we suggest floating to start the day. Yesterday we locked all rate locks overnight in preparation for the employment report and the 10 yr note failing to break its resistance. Still has not done it this morning but with the stock market getting hammered we will reload and float. Keep tuned for our rate alerts through the session.

At 8:00 this morning the 10 yr note -4/32 at 3.30%, mtgs started -2/32 frm yesterday’s close. At 8:15 the Sept ADP jobs report down 254K jobs; for August ADP increased its original estimate by 20K to 277K. At 8:30 Q2 GDP final hit at -0.7%, up frm the preliminary -1.0% reported in last month’s GDP release; the reaction to the better quarter put the 10 yr -6/32 and mortgages -5/32; the DJIA index +38. At 9:00 the 10 yr -7/32, 30 yr mtgs -5/32, DJIA +35. At 9:30 the DJIA opened +14, the 10 yr -6/32 and mortgages at 9:30 -4/32. (see below for 10:00 levels).

At 9:45 the Chicago purchasing mgrs index, expected at 52.0 frm 50.0, unexpectedly fell to 46.1. The much weaker index flipped stocks over to -90 on the initial reaction for the DJIA. The new orders component fell to 46.3 frm 52.5 (any read under 50 is contraction). The 10 yr note jumped to +1/32 frm -6/32 and mortgage prices which were -4/32 at 9:30 jumped to +5/32 on the session. A major shock to the stock market running investors and traders into safety trades. A double blow for economic bulls this morning.

Earlier this morning at 7:00 the weekly MBA mortgage applications. Apps declined 2.8% from the previous week, purchase apps were down 6.2% while re-fi apps were down 0.8%. The four week moving average for the market Index is up 3.9%.  The four week moving average is down 0.6% for the purchase Index, while this average is up 6.8% for the refinance Index. The refinance share of mortgage activity increased to 65.3% of total applications from 63.8% the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.94% from 4.97%, with points decreasing to 0.94 from 1.12 (including the origination fee) for 80% loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.34% from 4.41%, with points decreasing to 1.01 from 1.05 (including the origination fee) for 80% LTV loans. This is the lowest 15-year fixed-rate ever recorded in the survey.

Mortgage re-finances may have peaked. Credit is tight and FICO scores over 750 to get the best rate; while we can’t be certain, most of those qualified for re-finances may have already done it. Something to keep an eye on given purchases are still very sluggish.

This morning’s ADP estimate of job losses at 254K was worse than what markets were expecting, but since it isn’t the official BLS report which occurs Friday it isn’t getting the negative reaction that the BLS report will have if it shows more jobs lost than what markets are expecting (-180K to -200K). The ADP data does not include government job changes, thus if government jobs increased by say 25K the ADP would be closer to the BLS forecasts but still more lost jobs than markets are expecting now.

No additional data through the rest of the day; all about trading off stocks through the rest of the day, and monitoring the 10 yr note ability to break technical resistance at 3.28%.

Visit this site to apply for an Arizona Home Loan

Need to know your mortgage payment? Visit the best online Mortgage Calculators here.

Buy AZforeclosures homes for $100 Down

For more information call my office at (602) 291-4362

This is the second part of my blog from about 10 days ago on improving your credit score;

Piggyback on someone else’s good credit

The fastest way to establish a credit history can be to “borrow” another’s record, either by being added to a credit card as an “authorized” or joint user or by getting someone to co-sign a loan for you.  Keep in mind though it is a two edged sword.  You can gain good credit, however if either of you default, both parties suffer. (The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.)

Keep in mind that even if you get added to someone’s credit card, you may not be able to piggyback on his or her credit. Some credit issuers won’t report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. If the point is to give you a credit history, the person who’s adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Apply for a secured credit card

If you can’t get a regular credit card, apply for the secured version. These require you to deposit money with a lender and your credit limit is usually equal to the deposit.

You’ll want to screen your card issuer carefully because there are a lot of bad guys in this particular niche of the credit world. Some charge outrageous application or annual fees and really high interest rates.

The first place you should look is your credit union if you belong to one. You can also check at www.bankrate.com for a list of secured credit card issuers.  You may also call my office for a list of cards I recommend.  Ideally, the card you pick would:

• Have no application fee and a low annual fee

• Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments

• Be reported to all three credit bureaus.

If the issuer doesn’t report to the credit bureaus, the card won’t help build your credit history.

Get a finance company card

Gas companies and department stores usually use finance companies, rather than major banks, to handle their credit transactions. These cards don’t do as much for your credit score as a bank card (Visa, MasterCard, Discover, etc.), but they’re usually easier to get.

Again, don’t go overboard. One or two of these cards is enough. If you get many more, you may find that later in your life these accounts could prevent you from getting the highest possible credit score. That’s not a reason to avoid them completely, because right now they’ll do you some good. Just don’t apply for half a dozen.

Get an installment loan

To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

Once you’ve used plastic responsibly for a year or so, consider applying for a small installment loan from your credit union or bank. Keeping the duration short — no more than a year or two — will help you build credit while limiting the amount of interest you pay.

Apply for credit while you’re a college student

There’s no easier time to get a card than while you’re a college student.  Lenders are willing to take risks with you that they won’t once you graduate, probably because they know that your parents’ willingness to bail you out will end once you get your diploma.

Be careful, though. Look for a card with a low or nonexistent annual fee and low interest rates. For now, just get one: Opening a slew of credit accounts in a short period of time can make you look like a risky customer.

Use revolving accounts lightly but regularly

For a credit score to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months.

Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account. Just remember the credit tips mentioned earlier:

• Don’t charge more than 30% of the card’s limit.

• Don’t charge more than you can pay off in a month. Keep in mind, you don’t have to pay interest on a credit card to get a good credit score, and it’s a smart financial habit to pay off your credit cards in full each month.

• Make sure you pay the bill, and all your other bills, on time.

RAISE MY CREDIT SCORE – Learn How

View the BEST ONLINE Mortgage Calculator

Bi Weekly Mortgage Strategies To Be Debt Free in 10 years or less!

Bob Mangold has been a Mortgage Lender for the past 18 years and

has developed the exclusive DebtTrax System™ to help his clients

become completely debt free in 12 years or less (including their

mortgage)

For a FREE ANALYSIS visit www.azmortgagecalculator.com

Apply Here for an Arizona Home Loan

I am floating rate locks again to start the day. The equity markets hold the key to break rates into new recent lows (yields). Lower stock indexes today are critical to improving mortgage rates; if we get a lower close in the indexes the 10 has a good chance to re-test resistance at 3.28% and mortgage rate to decline 10 to 15 basis points.

No trending movement in the rate markets, just chop with the 10 yr and mortgages trading in a 10 basis point range for the past two weeks. Yesterday, one of the more volatile days in months, drove the 10 yr to 3.52% momentarily, then back to close at 3.41%, covering the entire trading range on the note in the last couple of weeks, mortgages also churning with no real changes.

At 8:00 this morning the 10 yr was unchanged, mortgages were +2/32 frm yesterday’s close. At 8:30 weekly jobless claims were expected to be up 5K to 550K, as reported claims declined 21K; continuing claims also dropped, from 6.26 mil last week to 6.138 mil. The reaction pushed the 10 down 4/32 and mortgages at 8:45 down 2/32. Stock indexes were flat prior to the claims data but increased 31 points on the DJIA. At 9:00 the DJIA futures was +10; 10 yr note +1/32 and mortgages +2/32. At 9:30 the DJIA opened +49, 10 yr +2/32 and mortgages +3/32. (see below for 10:10 levels)

August existing home sales at 10:00 were expected to be up 2.0%, they fell 2.7% to 5.10 mil units against 535K expected. Prices fell 12.1% annualized, inventory levels at a 8.5 month supply, the lowest level in 2 yrs. Government tax credits for first-time buyers and foreclosure-induced price declines are helping the housing market recover from the worst slump since the Great Depression. Not any initial reaction to the report n the bond market, the equity markets however, went negative after being up 60 points on the DJIA earlier.

G-20 meeting begins today in Pittsburg at 6:00 PM and concludes at 4:00 PM tomorrow with a press conference; however nothing will come of it in terms of market movement. Leaders of the G-20 nations have to confront $9T of global debt created to keep the financial systems from complete collapse. Their next challenge will be to reduce the resulting debt before it sparks higher bond yields and erodes their governments’ creditworthiness. The International Monetary Fund says G-20 debt will reach 82.1% of gross domestic product in 2010, almost 20 percentage points more than two years ago and the equivalent of about $37 trillion. US debt is now 84% of GDP, a level that markets have yet to fully understand as it impacts global growth.

Yesterday’s action in the stock market, closing lower than the previous day after making a new multi-month high earlier in the day, may have a significant impact on the near term outlook in the equity markets. A new high, then closing lower than the previous day, is a technical key reversal. Whether it is meaningful depends on today’s trading, a lower close will add to the view stocks may finally be setting up for a major correction. Many times a key reversal pattern leads to a change in direction, but there has to be a lower close today to add conviction and confirm the reversal yesterday. Significant for the rate markets; to drive mortgage rates lower the bullish bias in equities has to be shaken.

One more auction to go through today; $29B of 7 yr notes at 1:00. Yesterday’s 5 yr was not as good as we hoped, the rate was slightly higher than where it traded ion the WI (when issued) market earlier in the day, demand was decent however.

Apply Online for a Phoenix FHA Mortgage or USDA Loan

View the best online Mortgage Calculators

For more information on Phoenix Mortgages or Real estate, contact my office at (602) 291-4362

High volatility today in the rate and stock markets; treasuries were under pressure after the 5 yr note auction had a higher yield than what was expected pushing the 10 yr down 18/32 at one point with its yield jumping to 3.52% for a very short time. Mortgage prices at 2:00 were down 16/32 on the day. At 2:15 the FOMC statement was released and flipped the markets hard; the 10 rallied from -18/32 to +11/32, the yield dropped from 3.52% to 3.41% and mortgage prices from -16/32 to +6/32. Most lenders held the line on the early afternoon selling, and also didn’t bite on the knee jerk rally on the statement. The DJIA jumped to +80 on the statement, but also fell back to close on the lows of day—-buy the rumor, sell the fact?

The FOMC statement had little new in it as far as we saw other than a reaffirmation that the Fed would likely keep rates low for a long time as the economic outlook, while improving isn’t likely to grow much with unemployment high and home price wealth lost. Nothing really new in the statement, just confirmation rates are likely not about to increase much. The 10 yr once again has held its support at 3.50% on a closing basis. While treasuries were volatile today, mortgage prices were even more so. The statement in its entirety follows.

FOMC Policy Statement: Information received since the Federal Open Market Committee met in August suggests that economic activity has picked up following its severe downturn.  Conditions in financial markets have improved further, and activity in the housing sector has increased.  Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.  Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales.  Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack likely to continue to dampen cost pressures and with longer-term inflation expectations stable, the Committee expects that inflation will remain subdued for some time.

In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability.  The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.  To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt.

The Committee will gradually slow the pace of these purchases in order to promote a smooth transition in markets and anticipates that they will be executed by the end of the first quarter of 2010.  As previously announced, the Federal Reserve’s purchases of $300 billion of Treasury securities will be completed by the end of October 2009.  The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets.  The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted. (end)

The $43B 5 yr drew 2.470% with a 2.40 cover and an indirect bidder take of 44.8%. This is against the 2.435% to 2.460% anticipated yield in the WI trade this morning and an average over the ’09 auctions of 2.22 and 43.1%.

Tomorrow markets finally have data to think about. Weekly jobless claims at 8:30 are expected to increase by 5K to 550K, continuing claims down to 6.195 mil frm 6.23 mil the previous week.At 10:00 August existing home sales are expected to be +2.0% to 5.35 mil units annualized.

Apply Online for a Phoenix FHA Mortgage or USDA Loan

View the best online Mortgage Calculators

For more information on Phoenix Mortgages or Real estate, contact my office at (602) 291-4362

Monday September 21, 2009

Rate markets opened better this morning with the stock index futures trading weaker. At 8:30 the 10 yr note +12/32 3.44% -4 BP, mortgage prices +6/32 and the DJIA -57. Global stock markets were weak as many currently are re-thinking the levels to which global stocks have risen in the face of what will be considered a slow economic recovery. It is on again, off again with the equity markets; one day its pedal to the metal, the next its bullish but maybe too much too soon. In the end, so far there has been no sustained selling in the US or any other bourse; on any dips buying cuts off declines. At 9:00 the DJIA -57, 10 yr note +11/32 and mortgage prices +7/32. At 9:30 the DJIA opened -68. the 10 yr +11/32 and mortgage prices +6/32; (see below for 10:10 levels)

This week supply and the FOMC meeting are the dominate events. August existing and new home sales and weekly jobless claims are the key data points. Treasury will borrow $112B in 2,5 and 7 yr notes.

At 10:00 this morning August leading economic indicators, expected to be +0.7%, were +0.9%, July LEI revised to +0.9% frm +0.6%;the 5th straight month LEI has increased; LEI is a read that provides the economic outlook six months out and is a compilation of six other data reports. Generally LEI has little direct impact on the bond and stock markets unless it is well off estimates.

This week’s Calendar:

Tuesday;

10:00 FHFA housing price index (+0.5%)

1:00 $43B 2 yr note auction

Wednesday;

7:00 AM weekly MBA mortgage applications

1:00 $40B 5 yr note auction

2:15 FOMC policy statement

Thursday;

8:30 weekly jobless claims (+5K to 550K, continuing claims 6.195 mil frm 6.23

mil last week)

10:00 August existing home sales (+2.0% to 5.35 mil units)

1:00 $29B 7 yr note auction

Friday;

8:30 August durable goods orders (+0.3%, ex transportation orders +1.0%)

9:55 the U. of Michigan consumer sentiment index (70.5 frm 70.2)

10:00 August new home sales (+1.5% to 440K units)

The MSCI World Index is trading at its highest valuation since back in 2003; an increasing concern that the equity markets have overrun themselves based on the economic outlook over the next year. The MSCI World measure is valued at 27.7 times profit, the most expensive level since June 2003. The Dow Jones Stoxx 600 Index of European shares slipped for a second day, losing 1.1%. A 55% increase since March 9 has driven valuations on the gauge to 47.4 times reported profit, also the highest level since June 2003. Markets have been here before, looking for a pullback, in each instance when concern has increased for a pullback it has lasted less than three days before new buying pushed key indexes to another new high on the current run up.

This week the leaders of G-20 countries are meeting in Pittsburg to consider the plight of economic and financial reforms. Most of the world is looking to the US to get going with financial reforms and new regulations designed to eliminate in the future any debacle that lead to this present calamity. There is however, something to consider; whatever regs and new regulators are implemented, in the long run they will not work. May work for a couple of decades but in the end the financial markets will find a way (gradually) to get around them and greed will once again cause a serious financial mess. Greed is what keeps markets going and Wall Street in business.

Once again the bellwether 10 yr note has successfully held its key and significant support at the 3.50% area (Friday’s close 3.48%); A week ago last Friday (9/11) the 10 yr note tested its key support at 3.38% but couldn’t hold it, last week the 10 yr moved back to the support levels. This morning the 10 yr has held again on the weaker open in the stock market, but with supply and the FOMC meeting this week we don’t expect rate markets will improve much until at least Wednesday afternoon and only then if investors increase selling and profit-taking on stocks.

Apply Online for a Phoenix FHA Mortgage or USDA Loan

View the best online Mortgage Calculators

For more information on Phoenix Mortgages or Real estate, contact my office at (602) 291-4362

The rate markets are testing key support levels; still holding but looking more vulnerable with today’s price action. Suggest locking and not floating over the weekend.

The bond and  mortgage markets started badly early this morning and didn’t let up all day. Beginning to get a little concerned that lour forecasts for 5.00% mortgage rates may not happen anytime soon. Markets were treated to comments all through the week that the recession is over; Bernanke and Warren Buffet got the ball rolling at mid-week and added more conviction that worst is behind the economy. Even though Bernanke and many others have repeatedly said growth will be slow and likely the “new normal” will keep unemployment high for the next couple of years. The question now for fixed income markets is how much more money will be pulled out of notes and bonds to find a new home in the equity markets.

Today was a mirror image of yesterday; strong price improvements on Thursday were all erased today, suggesting that the 10 yr may be getting long in the tooth at these levels. Still holding support today but with $112B of treasury auctions next week rate markets may not be able to withstand the pressure if equity markets keep running higher.

On the week; rate markets were hanging tough until Friday’s heavy selling forced rates higher on the week, the first week n the past four rate markets will lose ground. The 10 yr note yield increased 12 BP, mortgage prices on the week, 30s -10/32, FHAs -4/32, 15 yr conventionals -4/32. The mortgage market performed better than treasuries this week. The DJIA +315, NASDAQ +51, and the S&P +25 on the week.

Next week; The FOMC meeting concludes on Wednesday at 2:15 with the statement. Nothing on the economic calendar until Thursday and Friday; weekly claims, August existing hm sales, August new home sales, August durable goods orders. Treasury supply will dominate; over the past three months investors have been bidding well for treasuries at the auctions, foreign buyers continue to support the US growing budget deficits. Will the demand continue to remain strong; traders are not likely to bet on it ahead of the auctions that begin next Tuesday.

To apply for a Phoenix FHA loan, USDA mortgage Visit This site

Visit the best online Mortgage Calculators

Friday, September 18, 2009

Treasuries and mortgages opened weaker this morning,

no follow-through from the strong rally yesterday. Pushing prices lower, the stock indexes started better pointing to a firm opening at 9:30. At 9:00 the 10 yr note -8/32, mortgages prices -5/32. At 9:30 the DJIA opened +52, the 10 yr -11/32 and mortgages -8/32 frm yesterday’s close. (see below for 10:00 levels)

There are no economic reports to deal with today; it is however a day that may see increased volatility with all financial options expiring as well as futures contracts, quadruple witching.

Yesterday’s better headline economic reports are getting the credit this morning for the better open in the equity market, but as we noted in yesterday’s afternoon report the interior data on the Philly Fed business index, weekly jobless claims, and housing starts were not so strong. Nevertheless, with Bernanke, Warren Buffet and about every analyst now convinced the recession is over, investors are continuing to buy equities. As long as the economic outlook remains positive lower interest rates will be difficult to achieve. Not much concern in the markets yet that the recovery will likely be at a snails pace compared to other recessions in the past 50 yrs.

Given the lack of follow-though frm yesterday so far this morning the rate markets may be vulnerable to more selling next week ahead of Treasury’s $112B of supply (2 yr, 5 yr, and 7 yr note auctions). Technically the 10 yr note and MBSs are still holding key moving averages and chart support levels, (3.50% for the 10 yr note and 100.03 on the Nov FNMA coupon now at 100.07). Still will hold to our slightly bullish outlook for rates but time and price equation is working against us; unless the 10 yr note and mortgages gain traction in the next few sessions both may turn technically bearish. The 10 can’t sit at this level for much longer before traders will turn more bearish. Mtg rates hovering at 5.00% levels have to break below it or that market also will give up the fight.

Apply Online for a Phoenix Mortgage

Visit the best online MORTGAGE CALCULATORS

For more information, call my office at (602) 291-4362

By Bob Mangold

It is vitally important to have good credit today.  Not only does it determine the interest rate you will pay when you buy a car or a home, but a good credit history is also a factor when you are applying for a job, renting an apartment, obtaining car insurance rates or applying for a credit card.  What may seem like a tiny mistake to you, can actually drag you down for many years.  One late payment, maxed out credit cards, or taking out several loans at the same time all appear to be minor mishaps, however, the credit bureaus view them as a black mark on your credit report and creditors respond accordingly.

It is not that hard to establish and keep good credit, especially if you are just starting out.  Follow these simple rules, and your credit will sparkle.

Check your credit report

Before anything else, you want to see what creditors are saying about you.  Do this by checking with the three major bureaus: Equifax, Experian and Trans Union.

Credit reports are used to create a credit score, which is a three-digit number lenders typically used to gauge your creditworthiness. Scores range from 350 to 850 and lenders respond best when the score is over 720.  Lenders also may look at the report itself, as may the landlords, employers and insurance companies who use credit to evaluate applicants.

Establish checking and savings accounts

Lenders view checking and savings accounts as signs of stability, yet many people overlook this simple thing.  Opening an account is also one of the few things you can do as a minor to start building a financial history. While you can’t get a credit card in your own name until you’re 18 and can be legally held to a contract, many banks have no problem letting you open a bank account.

Understand the basics of credit scoring

A basic knowledge of credit scoring will help you build your score.  Two of the most important factors in building your score are:

• Whether you pay your bills on time.

• How much of your available credit you actually use.

It’s absolutely essential that you pay all your bills on time. All it takes is a single missed payment to trash your credit score — and it can take seven years for the effects to completely disappear.

You also don’t want to max out any of your credit cards, or even get close. You will get the best possible credit score and prevent yourself from getting over your head in debt if you keep your credit balances to less than 30% of your credit limits.  (This means if you have a $3,000 limit your balance should stay below $1,000.)

And remember, you don’t need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time.

RAISE MY CREDIT SCORE – Learn How

View the BEST ONLINE Mortgage Calculator

Bi Weekly Mortgage Strategies To Be Debt Free in 10 years or less!