Whether you’re moving to another city in your area or a new state, one important piece of the puzzle when buying a new home is understanding the makeup of your credit score.
The team at Fidelity Bank knows payment history is the most influential component of a credit score, followed closely by how much a homeowner owes. To a lesser degree, considerations like the length of time a potential homebuyer has utilized credit, the number of new accounts or inquiries they have, and the various types of credit accounts they hold may also impact a score. Overall reporting also looks at how these factors relate to each other in the context of your personal usage.
To help achieve or maintain a healthy score, always remember the following:
• Have a system to assure your bills are always paid on time.
• Avoid late payments or the excessive use of credit by maintaining a cash “cushion” to pay for unexpected expenses. Don’t “max out” credit cards. It’s better to have a high credit limit with a low balance.
• Never close old accounts as the age of these can actually help a credit score.
• If you shop for credit, do so in the shortest time period possible to minimize inquiries counted against you.
• Don’t be afraid to use credit. You need several accounts in order to have a credit score. Just be sure to keep corresponding payments within your means.
• If you have established credit, don’t open new accounts solely for the sake of earning a discount on a new purchase. In the long run, you may spend more than you save up front by paying higher interest rates due to a lower score. Having more accounts also increases the task of making payments and the possibility of missing one.
Founded in 1974 and owned by Fidelity Southern Corporation, Fidelity Bank is one of the largest bank holding companies based in Atlanta with $4.3 billion in assets and more than 1,300 employees. Through careful, deliberate management and the company’s belief in “The Golden Rule,” it has grown to more than 65 bank branches throughout metro Atlanta and Florida and 30 mortgage offices throughout the Southeast and Mid-Atlantic. Additionally, Fidelity Bank operates Wealth Management, as well as SBA, Commercial, Indirect Automobile Financing and Construction Lending offices throughout the Southeast.
Fidelity Bank offers a full suite of financing options to meet a homeowner’s needs, including some of their unique loan features. Every Fidelity Bank employee is someone from the community they serve; and they understand what a customer needs because they are a neighbor, friend and fellow community member. This is why Fidelity Bank is devoted to building real relationships in their communities, one customer at a time. Visit lionbank.com/mortgage to learn about available programs. Member FDIC and Equal Housing Lender. Loans subject to normal credit approval criteria.