|
The amount you currently owe to lenders focuses on the current outstanding debt, the number of different accounts and types of credit. A large amount of debt from many sources has an adverse effect.
The number of years of your history also affects your score, along with your applications for new credit. Also, the more types of credit you have outstanding, the lower your credit rating will be.
Since your credit score is a key tool used by lenders, it is important to maintain and improve it periodically.
Your credit rating is most affected by your record of paying off debt and can be boosted by having a record that shows you pay off debts fairly quickly. A low level of debt, having many years of history and avoiding applying for more credit will all help your credit score.
When you apply for a mortgage, utilities, a phone hookup, or apply for a job your credit rating is checked. A low credit rating means a risk premium must be added to the interest rate on your mortgage. The table below shows how varying credit scores change the interest rate on a mortgage, having a huge impact on the monthly payments:
Recommendations for maintaining a high credit rating:
· Repay loans on time as agreed.
· If you encounter problems paying debt, call the creditor to make arrangements.
· Limit the number of credit applications.
· Keep debt as low as possible
· Credit card debt is frowned upon compared to a bank loan.
· Avoid accepting credit card offers that arrive by mail or are offered by phone. Signing up will hurt your credit score.
· Show a consistent employment record, preferably with the same company for three or more years.
· Your chosen field of employment is considered solid and steady.
·
Credit bureaus serve as clearinghouses for information about consumer debts and keep files on borrowers. To obtain a copy of your credit report, contact one or all three of these bureaus:
1) Equifax www.equifax.com
2) Experian www.experian.com
3) TransUnion www.transunion .com
It is a good idea to check your credit record periodically to correct possible errors before the records result in the rejection of a loan application. It is the information provided by these bureaus that tell a lender if you are a safe credit risk.
PROPERTY TAXES FOR THOSE OVER AGE 65
If you are over age 65, there are four ways to lower your property taxes:
1) As a homeowner over age 65, you are entitled to the over-65 homestead exemption available in addition to the regular homestead exemption. Exactly how much you save depends on where you live, because the taxing authorities are permitted to offer exemptions ranging from $3,000 up to the full value of your home. If you live in Fort Bend, visit the Fort Bend Central Appraisal District website at www.fbcad.org or call 281-344-8623rris County, you can visit www. Hcad.org or call 713-812-5800. For Montgomery County, log on to www.mcad-tx.org.
2) Once you have obtained your over-65 exemption, your school district taxes will automatically be capped at the amount due for the first year you qualify for the exemption. Your taxes cannot be increased as long as you own and live in your home, unless you make improvements that increase its value.
3) If you cannot afford to pay your tax bill and you are over age 65, you have the option to defer payment of those taxes by filing an “Over-65 Homestead Tax Deferral Affidavit”. This doesn’t mean taxes never have to be paid, but they are deferred until you die or sell the home. In the meantime, the taxes continue to accumulate and accrue interest at 8 percent per year.
4) If you do not wish to defer taxes until after death, but would like a longer period of time to pay them, you can pay your property taxes in installments without interest. Normally, all property taxes must be paid by January 31st. However, being over 65 entitles you to elect to pay in four equal installments by January 31, March 31, May 31 and July 31.
To obtain the residential homestead exemption and the over-65 exemption, you need to fill out an Application for Residence Homestead Exemption. This can be downloaded from the Fort Bend Appraisal District’s Web site. In Harris and Montgomery Counties, the form is called an Application for Residential Homestead Exemption.
|
