Some loans are considered more valuable than others, such as a mortgage. This type of loan usually shows that a person is more responsible. The credit scoring system requires a minimum amount of activity on these accounts for revolving – such as a credit card – and installment loans – like a mortgage or an auto loan.
The activity on a mortgage or auto loan is not as critical as a revolving account because you make those payments regardless every month versus a credit card that can be put into a drawer and not used for months and months. In order to keep your credit card accounts active you should use them at least every 6 months so they won’t go unrated or become an inactive account.
You should have some payment activity from both types of loans – it is critical to raising credit scores.
Ben Kruell was involved with the commercial construction industry for over ten years. After finishing school in Duluth, MN he moved to the Minneapolis/Saint Paul area. Ben has worked with some of the largest companies in the world on fiscal budgets and cost projection plans. Some of those companies included 3M, Ecolab and Cargill. In 2003 Ben received an award for “Leadership and Excellence” from Cargill World Headquarters located in Minnetonka, MN.
Ben has dedicated himself to his financial career by becoming part of the UpFront Mortgage Broker’s Association. Ben is the Arizona Small Business Association’s COR3: Republic Bank of Arizona preferred Mortgage Planning Specialist.
Ben has also taken a special interest in helping people with credit education and financial literacy. Ben is a certified expert in the fields of Credit Scoring and Credit Optimization. He is the “720creditguru.com” president and co-founder of Credit Education Resources, LLC with Steve Heideman. Ben is also the president of Agave Capital Partners, LLC which is a capital raising company for private investments.
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