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Improving credit score
I recently had an opportunity to sit down with my 21 yr old son and a mortgage broker I have used in the past. Ostensibly, we were there to apprise my son's ability to purchase a home and the discussion was mostly about credit scores.
The broker suggested that lowering all credit balances to at least 50% is key. He emphasized that the goal is to get it under that mark, not pay it off. Also, he said that instead of paying down to zero, that it is beneficial to maintain a small balance of around $100. He also stated that it is generally not a good idea to use finance companies such as GE Finance, Household Finance, etc, as opposed to Visa, MasterCard, AMEX.
I left the meeting intriqued by this information and am wondering if anyone else can add their own experience with improving credit scores.
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"The gift of liberty is like that of a horse, handsome, strong, and high-spirited. In some it arouses a wish to ride; in many others, on the contrary, it increases the desire to walk."
-- Massimo d'Azeglio
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