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 5 Ways to Improve Your Credit Score
With
mortgage markets still tight, it's more important than ever to have a good
credit score. Having a good score not only increases the odds of being approved
for a mortgage, but it can also affect your rate, as the best interest
rates are generally reserved for applicants with top credit scores.
Many
consumers aren't knowledgeable about their credit scores.or
what impacts them. More importantly, they may not be aware of the many
things they can do to improve their scores. Here are some tips that could
help boost your score.
Get
a copy of your credit report. Review it carefully to ensure that it's
correct. If you find an error, contact the creditor to have it corrected.
You can request a free copy of your report at www.annualcreditreport.com.
Under federal law, you are entitled to a free report from each of the three
national credit reporting agencies every 12 months.
Pay
your bills on time. This is probably one of the most important.and
simple.things you can do to improve your credit
score. Just pay your bills by their due date. Consider setting up automatic
payments from your bank account to help you pay on time.
Pay
down your credit cards. Paying off your credit cards or loans will help
increase your score, but so will paying down your balances. Try to keep
your balances below 30 percent of your credit limit.
Avoid
closing unused credit cards. The older your credit history, the better. So
keep your older cards, and use them periodically to keep the account
active. Just be sure to pay your bill on time.
Check
your credit limits. If your lender has reported a lower credit limit than
you actually have, your score will be depressed. Once the information is corrected,
your score should improve.
For
more tips on improving your credit, or for a referral to a mortgage lender
in your area, call our CENTURY 21 Office today.
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