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.
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 purchase big-ticket items for
your new home on credit cards 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.
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