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8 Ways to Improve Your Credit
Credit scores, along with your
overall income and debt, are a big factor in determining
if you’ll qualify for a loan and what loan terms you’ll
be able to qualify for.
Check for and correct
errors in your credit report. Mistakes happen,
and you could be paying for someone else’s
poor financial management.
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.
Don’t charge your
credit cards to the maximum limit.
Wait 12 months after credit
difficulties to apply for a mortgage. You’re
penalized less for problems after a year.
Don’t purchase big-ticket
items for your new home on credit cards until
after the loan is approved. The amounts will add
to your debt.
Don’t open new credit
card accounts before applying for a mortgage.
Having too much available credit can lower your
score.
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.
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.
James E.
Bohne, Jr., REALTOR®
Mobile: (801) 791-9579
Office: (801) 476-9500
Fax: (801) 476-9581
E-mail: j.e.bohne@att.net |
Crest
Realty Inc.
Equal Housing Opportunity.
Equal Opportunity Employer. |
Copyright © 2005,
James E. Bohne, Jr., All Rights Reserved
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