Improving Your Score
I was bragging about how I paid cash for everything until one day I wanted to buy a car. The dealership said I didn't have bad credit, I just didn't have any credit. My bragging stopped there. Part of the collected advice I got, was open a credit card or two, charge on it, then pay it off when due. 
What is looked for is the ability to pay debts. This creates credit history. And the number one behavior that is zeroed in on is paying the debt on time. Keep low balances. This is big if you're looking to improve your credit score. One late payment dings your score. If you can't qualify for a regular credit card, consider a secured credit card, where the issuing bank gives you a credit line equal to the deposit you make. Look for a card that reports to all three credit bureaus.
I was also told, don't close accounts. It sends a red flag to FICO. You don't necessarily have to keep balances on them but don't close them. It lowers the score. Getting an installment loan can be a quick fix too. This is different from a credit card, it's more like a car loan or personal loan. Paying this back shows you are responsible and able. 
A mixture of credit cards and installment loans, loans with fixed payments, can help raise your score if you manage the credit cards responsibly. Time plays a big part in improving credit scores. It's actually the credit history you are laying down new pavers for. If it was imperfect in the past, you have to show change in the present and keep showing change - for the good. To make a new history. Does that make sense?
You actually have three credit scores, one for each of the three major credit bureaus: Equifax, Experian, and TransUnion. Mortgage lenders pull all three. And folks that have been qualified to purchase a home, don't rock the boat in the middle of the process. Like going out and charging new furniture or getting a new car loan. This really messes thing up. Your debt ratio needs to stay the same until loan is approved. Stay on top of your credit reports. You're entitled to one free copy per year from each bureau. 
You can get this at annualcreditreport.com, and look for misreported delinquencies, over-reported loan amounts, and underreported credit limits. Request corrections from the bureau in writing.
Ok, already got a good credit score and you're ready to buy a house? You can call me, Terri Poehler at 954-294-3937 for a list of available properties in Broward County. Take advantage of todays low mortgage rates.
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