Credit Issues to Avoid Prior to a Mortgage
If you plan on getting a mortgage in the near future, there are certain things to avoid prior to applying for a loan that could reduce your credit score and affect your chances of qualifying,
Because of the importance of this number, there are some things you should be aware of that can boost your credit before starting the loan process.
* Do not apply for any new credit cards before getting a loan
* That includes not opening new accounts to transfer credit balances
* Avoid running up credit card balances, but reduce them instead
* Don’t buy a vehicle that requires getting new a loan financed
* It is not a good idea to close any accounts with or without a balance
* Do not allow any payments to go over 30 days late or to collection
When applying for a mortgage, your credit scores are one of the most important things that determine if you qualify for a loan. Not only can your score determine if you can get a loan, but also the rate you pay for one.
Because of the importance of your credit score, there are some other items you should be aware of that can boost your credit before starting the loan process.
Credit formulas use a variety of data in a to calculate a score. Major items that can change your scores include:
* Do not apply for any new credit cards before getting a loan
* That includes not opening new accounts to transfer credit balances
* Avoid running up credit card balances, but reduce them instead
* Don’t buy a vehicle that requires getting new a loan financed
* It is not a good idea to close any accounts with or without a balance
* Do not allow any payments to go over 30 days late or to collection
Check for errors on your credit report and dispute the accuracy if you find any. Consumer disputes must be investigated by the credit reporting agencies within 30 days of reporting an error. If the derogatory information cannot be confirmed by the source during that time period, it must be removed from your report, which could boost your score.
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