Follow the Path to Golden Credit

  

If you are like me you probably think about your credit score often, and perhaps that’s something to do with being a REALTOR.

Topics like good credit are constantly on our minds, especially now when there are so many folks out there hurting financially. Lets face it, no one is perfect even though we might try to be.
 In some cases we spend our whole life doing what we feel is the right thing and then WHAM some FINANCIAL crisis happens beyond our control and we no longer have that GOLDEN CREDIT we were once so proud of. 

Here are 10 ways you can begin to establish or improve your credit, so stop fretting about the situation and TAKE CONTROL … 1. Pay your bills on time, if you pay on time and continue to do so for years to come, this will lay a solid credit foundation.

 2. Check for and correct any errors there might be in your credit report, you can check your credit report once a year free of charge at www.freecreditreport.com 

3. Pay down existing credit card bills, if it’s ever possible to pay down the entire balance do so and then if you can, pay of the balance every month. At the very least make the monthly payment and a little more if you can. Transfering credit card debt from one card to another could lower your score.

4. Don’t charge credit cards to their maximum.

5. Wait 12 months after credit difficulties to apply for your home loan. You’re penalized less for problems after one year.

6. Don’t order items for your new home on credit – such as appliances and furniture – until after the loan is approved. The amounts will add to your debt.       

7. Don’t open new credit card accounts before applying for a home loan. Too much credit can lower your score. If you have an old credit card you don’t use, rather than cancelling it, use it once in a while and pay the balance off in full.

8. Shop for home loans all at once. Too many credit applications can lower your score, but multiple inquiries from the same lender are counted as one inquiry if submitted over a short period of time.

9. 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.

10. Try to avoid constantly changing jobs. Lenders like to see stability in employment as stable income means you’ll have a better chance of making your payments.
Working to establish or improve your credit can be frustrating and credit history takes time, so it needs to be approached as a long term goal. Don’t despair if you follow the suggestions above it will put you on the right track to begin increasing your score. There is a light at the end of the tunnel!
    
 

 Paul Gonzales of CW Mortgage contributed to part of this content.