- Check for
and correct errors in your credit report. Mistakes
happen, and you could be paying for someone else's poor financial
management.
- 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.
- Don't
charge your credit cards to the maximum limit.
- Wait 12
months after credit difficulties to apply for a mortgage.
You're penalized less for problems after a year.
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This information is copyrighted by Fannie Mae Foundation. |
- 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.
- Don't
open new credit card accounts before applying for a mortgage.
Having too much available credit can lower your score.
- 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.
- 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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