Improving your Credit Score

Credit scores, along with your overall income and debt, are big factors in determining if you will qualify for a loan and what loan terms you will be able to qualify for. The list below is a list of ways to improve your credit.

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 debit 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 are penalized less for problems after a year.
5.  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 debit.
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 inquires 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 may be a sign of poor credit management.