Credit and You

Credit and You

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 helpful hints below:

• Obtain your free credit report from www.annualcreditreport.com and check for any errors. Discuss with your lender before making any corrections or paying off anything if within 12 months of buying.

• 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.

• Don't charge your credit cards to the maximum limit.

• Don't order items on credit such as appliances and furniture until the day after you close on your new home.

• Don't open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

• Shop for mortgage rates all at once. Too many credit applications can lower your score.

• Avoid finance companies. Even if you pay the loan on time, the interest rate is high and it will probably be considered a sign of poor credit management.