Here are some examples of how the
SpareCredit concepts can help your credit score.
(All the examples are hypothetical and assume responsible financial behavior.)
| First Time Home Buyer |
| AGE: |
26 |
| FICO Score: |
690 |
| Debt: |
$4,500 @ 14.9% |
| Total Credit |
$10,000 |
| Debt-to-Credit Ratio |
45% |
| Situation: |
Here is someone comfortably making ends meet but wants to purchase a home within the next few years. With a debt-to-credit ratio of 45% acquiring a preferred mortgage may be difficult. |
| Action: |
Simultaneously applied for 3 major credit cards.
Transferred the existing balance to 0% accounts for 12 months. |
| Results: |
Acquired all three cards with $3,000 credit on each.
Improved debt-to-credit to under 24%.
Has additional $9,000 available for emergency use.
18 months later...
Improved credit score to 720.
Improved mortgage rate by 1/8%.
Reduced mortgage payment by $9.00 a month.
Saved $650 in interest from balance transfer.
36 months later...
Credit score improves 740 as accounts age.
|
| Successful Professional |
| AGE: |
38 |
| FICO Score: |
730 |
| Debt: |
$8,000 @ 8.9% |
| Total Credit |
$30,000 |
| Debt-to-Credit Ratio |
27% |
| Situation: |
Home owning professional with growing career. Still holding sub-prime cards from earlier years. |
| Action: |
Simultaneously applied for 3 quality credit cards with rewards.
Transferred half of $8,000 automobile balance to 0% account a year. |
| Results: |
Acquired all three cards with $5,000 credit on each.
Improved debt-to-credit to under 18%.
Has additional $15,000 available for emergency use.
18 months later...
Improved credit score to 740.
Drops old sub-prime accounts.
36 months later...
Credit score improves to 750 as sub-prime accounts fall off reports.
Eligible for lower rate on home refinancing.
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