Written by June Holder
What You Can do to Improve Your Credit?
Part 2
Last month we discussed some issues that can have an effect on your credit score and how the credit bureaus gather that information about a buyer. Here are more tips
and education on improving your credit score. Credit scores, along with your over all income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:
1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t order items for your new home on credit – such as appliances and furniture – until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
*This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie May Foundation. To obtain a complete copy of the publication, “Knowing and Understanding Your Credit”, visit www.homebuyingguide.org.
We will be giving more information out to new buyers with their utmost safety and interest in mind. Our company is dedicated to bringing information to our clients that will help them make the best decision for them and their families. We are most concerned in happy clients, Good Luck with the search on your new home!
