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11330 E. 21st, Wichita, KS 67206 - (316) 634-1600
371 N. Main, Haysville, KS 67060 - (316) 554-8500
Letter from the Vice President
Credit score tips from Travis Carr, Vice President
With recent mortgage issues and the tightening of the credit markets due to the housing slump and sub-prime loan troubles, your credit score is one of if not the most important factor in getting approved for a home or auto loan.
In months and years past, lenders and investors had much more liberal underwriting and qualifying guidelines that had to be met in order to get an approval for an applicant. Today many of the programs that people were previously qualified under do not exist. Lenders have not only increased minimum credit score guidelines, but they also reduced the maximum loan to value ratios within those programs. Larger down payments are now required in most cases making qualifying more difficult for some.
With a lower credit score even fewer loan programs will be available to an applicant so protecting your credit score and your credit history is paramount. Listed below are a few tips that should help you keep your credit score as high as possible to maximize the chances you’ll be approved for that new loan you want.
• Request copies of your credit bureau from the three main credit repositories:
Transunion, Experian, and Equifax. These companies are required by law to provide you with one free consumer bureau per year. Make sure that the accounts and the history on the listed accounts are accurate. If they are not, you have the right to dispute the inaccurate item. You can request your bureaus at each of the company’s websites.
• Probably the single most important factor in keeping a high credit score is making sure that you PAY YOUR MONTHLY OBLIGATIONS ON TIME. Paying just 30 days past the due date can have serious negative consequences to you and your credit score.
• If you are not able to pay your credit card balances in full each month, do make every attempt to carry the smallest balance possible. If a creditor sees that you have several credit card accounts that are at or near the maximum limit it will be of concern to them and decrease your chances for approval.
• Closing credit accounts that are rarely used will not increase your credit score, but typically decrease it. There is some benefit to leaving these accounts open but keep in mind you may be more susceptible to fraud or account theft by leaving them open.
Utilizing these tips will help you maintain your high credit score, or start to increase a low credit score and better your chances of you getting that loan approval that you want. Loan officers at both Community Bank locations are available to discuss your credit history and the items in your credit bureau report. Feel free to call and set up a time that is convenient for you so we can discuss this very important matter.
Travis R. Carr
Vice President
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