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Mortgage Tips - Increase Your Credit Score

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Here are some great tips on how to raise or keep your credit score

Do not max out your credit card

It is fine to use credit cards just do not max it out. When score is being taken into consideration the creditors want to make sure that you are paying off on time. Perhaps a rule can be not to keep the balance to over 30%.

Pay down your balance every month if possible

Try paying ahead of the statement date. You might want to put an automatic payment ahead of the due date for the minimum amount and then you can alway add to it.

Check your credit report annually

You may have collections on there which you may not be aware of. Did you know that if you are in dispute with your medical bills or if you have an outstanding bill that the insurance has not paid yet on, there is a possibility that it maybe put on your credit report without you knowing about it.

Try minimizing credit applications

Scoring systems may ignore multiple requests for the same type of loan, treating them as one request within a scoring timeframe (typically 30 to 45 days), but with other systems you have variable days.

You need credit

Do not live under the assumption that you don’t owe money so you should have no problem getting a loan. This is great if you have a good credit history but keep in mind a Credit Report can only report on Credit usage.

Use your credit cards periodically

Many credit card companies close out your account if there is no activity and even lower your credit limit. Try using it even for a small purchase every six months.

Mortgage Tips - Increase Your Credit Score

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