Well, we hear so much about how important credit is when it comes to securing a mortgage. Good credit is CRITICAL when working towards getting best rates and terms.
- Don't Apply For New Credit. Evey tme you have your credit checked, you can lose points from your credit score immediately.
- Don't Pay Off Collections or Charge Offs. If you want to pay off old accounts, do it through escrow and make sure the debt is yours. Request letter for deletion from the creditor.
- Don't Close Credit Card Accounts. If may appear that your debt ratio has gone up when account is closed. It could also affect in the score and history.
- Don't Max Out or Over Charge Credit Card Account. Try to keep credit card balances below 30% of their limit. If you pay down, do it across the board.
- Don't Consolidate Your Debt. When you put your debt together on one or two cards, it will appear as you are maxed out on that card. You may get penalized too.
- Don't Do Anything That Will Cause A Red Flag By The Scoring System. This includes adding new account, co-sign, name change/address with the credit bureaus.
- Do join a Credit Watch Program. You can monitor your status and if something strange shows up, you can take care of it ASAP.
- Do Stay Current On Existing Accounts. If you get a one 30 day late notice, it can cost you.
- Do Continue To Use Your Credit As Normal. If it appears that you are changing charging patterns, it can also creat a Red Flag.
- Do Get Help From Loan Officer. Your loan officer is a great source to get info on credit reporting.
Above information has been provided by Ambassador Capital/Pasadena, CA
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