Page 12 - August 2022 Issue.indd

during the worst of Covid, and the millions, actually billions in
Buying or Selling? stimulus money have made everyone’s personal balance sheet
look better, we may feel we can continue to spend accordingly,
with potentially disastrous results.

These two factors are the most impactful, 65% and the easiest

for a consumer to control. The other three factors, how long
you have had credit, your credit mix (revolving and installment
I’m the KEY credit) and time since last account opened make up 35% of
your credit score and have less of an impact.
to your next The longer you have credit the better your credit scores will be,

assuming payments made on time and balances maintained as
previously noted. You have no control over time or how long,
HOME you do have control over payments. This is 15% of your score.

Your mix of credit accounts is 10% of your score. Th e more
diverse our accounts, revolving, installment, store credit cards
and mortgages, the better. I have seen borrowers who have
only installment credit because they didn’t believe in credit
cards. Actually, they don’t have confidence in their ability to

manage them appropriately. Responsibly managed revolving
credit cards are what make the world go round, no pun

intended. It will be exceedingly difficult to have a high credit
score without responsibly managed credit cards, both major
cards like Visa/Mastercard and individual store cards.
The last 10% factor is time since last accounts opened or
number of inquiries into your credit in the last six months.
Mail solicitations for 0% balance transfer credit cards are
Amy Endzel, Realtor becoming more prevalent as card issuers realize the challenges

Direct: 443-786-5189 consumers have in a high inflation environment. If you are
Office: 410-972-4000 considering taking advantage of 0% balance transfers to a new
card, apply only to one company. Some people will get multiple
amyendzel@kw.com offers from several companies and apply to multiple issuers.

homesontheshore.kw.com

You receive offers for credit because a business/card issuer

has done a “soft pull” inquiry into your credit for promotional
purposes, which does not impact your credit or credit score.
Accessing your own credit through one of the repositories, or
a business you have applied for employment, or an insurance

company will also be considered a soft pull report.

When you act on an offer for credit and apply, a hard pull
Teachers & School Staff inquiry will usually be generated and your credit score will
decrease. How much will depend on how extensive, or deep,
your credit history is. The more established your credit the

Ask me for details on how I'm less impact it will have.
giving back to the teachers and It is during these challenging financial times that credit access

school staff that I have a privilege and management can be a lifesaver. Improper management can

of working with in 2022! be a financial disaster that could take years to correct.
Mr. Rowe is Vice President/Lending for Bay Capital Mortgage
Let me help you! Corp. with offices in Easton and Annapolis. He has lived in
Caroline for his entire life and supports the county by volunteering
in a variety of ways. He currently lives near Greensboro with his
wife Jeanne and daughter Kelsey.

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