What You Can Do to Improve Your Credit

Dated: 03/05/2019

Views: 11

WHAT YOU CAN DO TO IMPROVE YOUR CREDIT

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any 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. 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 order items for your new home on credit — such as appliances and furniture — 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. 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.

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 www.homebuyingguide.org.

The data relating to real estate for sale on this site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than Results Realty Services are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers. 

Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. 

Copyright 2019 Georgia MLS. All rights reserved.

Latest Blog Posts

10 Questions To Ask Home Inspectors

10 QUESTIONS TO ASK HOME INSPECTORSBefore you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with

Read More

10 Questions To Ask The Condo Board

10 QUESTIONS TO ASK THE CONDO BOARDBefore you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive — and organized — its members

Read More

10 Questions to Ask Your Lender

10 QUESTIONS TO ASK YOUR LENDER1. What are the most popular mortgages you offer? Why are they so popular?2. Which type of mortgage plan do you think would be best for me? Why?3. Are your rates,,

Read More

10 Ways to Prepare for Home Ownership

10 WAYS TO PREPARE FOR HOME OWNERSHIP1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. 2. Develop your home wish

Read More