Credit scores play a big role in determining whether you\u2019ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:<\/p>\n
Check for errors in your credit report.<\/strong> Pay down credit card bills.<\/strong> Don\u2019t charge your credit cards to the max.<\/strong> Wait 12 months after credit difficulties to apply for a mortgage.<\/strong> Don\u2019t order items for your new home on credit.<\/strong> Don\u2019t open new credit card accounts.<\/strong> Shop for mortgage rates all at once.<\/strong>
\nThanks to an act of Congress, you can download one free credit report each year at annualcreditreport.com. If you find any errors, correct them immediately.<\/p>\n
\nIf possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.<\/p>\n
\nPay down as much as you can every month.<\/p>\n
\nYou\u2019re penalized less severely for problems after a year.<\/p>\n
\nWait until after your home loan is approved to charge appliances and furniture, as that will add to your debt.<\/p>\n
\nIf you\u2019re applying for a mortgage, having too much available credit can lower your score.<\/p>\n
\nHaving too many credit applications can lower your score. However, multiple inquiries about your credit score from the same type of lender are counted as one if submitted over a short period of time.<\/p>\n