8 Ways
to Improve Your Credit
Credit scores, along with your
overall income and debt, are a big factor in determining what
loan terms you'll be able to qualify for.
| 1. |
Check for and
correct 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. However, 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 you'll buy on credit such as appliances
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.
Having 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 Mae Foundation. To
obtain a complete copy of the publication, Knowing and
Understanding Your Credit, visit http://www.homebuyingguide.org. |
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to Buying Tips Page
Dennis Martin Realty
info@dennismartinrealty.com
|
