Your Credit Score – It Matters!
May 22nd, 2011 Categories: Real Estate News
Your Credit Score – It Matters! Whether you already 0won a home or are just starting to look for that special house, your credit rating should be as healthy as possible.
Here are a few simple things you can do on your own:
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Request a copy of your credit report and check closely for any discrepancies. By law you are entitled to three free credit reports a year.
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Avoid loans from “low quality” lenders such as finance companies, payday companies or even some auto dealers
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Avoid opening new accounts, especially one from retail merchants offering discounts at checkout. Opening several new accounts within a 12 month period can drop your credit score.
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Maintain a savings account or money reserve.
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Make monthly payments on time. Late payments can sink your credit rating.
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Maxed out credit cards and lines of credit are big warning signs to lenders. Ideally you should pay off your credit cards completely. At the very least, pay down loan balances to under 50% of your credit line.
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Extra tip – if you are shopping mortgage lenders try and keep credit inquiries within a 14 day period. Multiple requests from varied sources may cost you points.
Michael
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