• Check for errors in your credit report.
    You can download from the internet one FREE credit report each year a www.annualcreditreport.com.  If you discover errors, get them corrected immediately.
     
  • Pay down all your credit card bills.
    It’s best, if you can, to pay the entire balance every month.  It is not advisable to transfer credit card debt from one credit card to another.  This can lower your credit score.
     
  • Do not max out your credit cards
    Pay as much as you can each month of your credit card bill.
     
  • Wait 12 months after you have credit issues to apply for a mortgage
    You won’t be penalized as severely, after 12 months.
     
  • Do not order any charge items for your new home.
    Wait until you close on your new home to charge items.  Just prior to closing, the lender will check your credit score again.  If new charges show up, this could cause the loan not to go through.
     
  • Do not open any new credit card accounts.
    Too much available credit can lower your score and cause you not to qualify for a mortgage.
     
  • When seeking a mortgage, shop mortgage rates all at once.
    Too many credit applications, can lower your credit score.  However, multiple inquiries from the same “type” of lender are counted as one, if submitted over a short time frame.
     
  • Avoid Finance Companies
    These may be considered a sign of poor credit management.  Even if you pay off the loan on time, the interest is high.