Many folks are taking advantage of the historic low interest rates, either by restructuring debt with a refinance or purchasing a new home. However the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.
Leading nationwide credit expert and president of Credit Resource Corporation, Linda Ferrari, developed 10 credit don'ts during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
1. Don't do anything that will cause a red flag to be raised by the scoring system.
2. Don't apply for new credit, of any kind.
3. Don't pay off collections or charge offs.
4. Don't max out or over charge on your credit card accounts.
5. Don't consolidate your debt into 1 or 2 credit cards.
6. Don't close credit card accounts.
7. Don't pay late.
8. Don't allow any accounts to run past due, not even one day.
9. Don't dispute anything on your credit report.
10. Don't lose contact with your mortgage and real estate professionals.
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