Mortgage Trends & How to Raise Your Credit Score
Mortgage rates are jumping up and down, It looks like rates are moving up as the markets worry about inflation, the drop in consumer confidence, and the toll high gas prices are taking on the national economy. Larger down payments are now being required by lenders and credit restrictions are putting the squeeze on people with lower credit scores. If you're in the market for a new home, make sure you know your credit. Here's some tips on how to raise your credit score:
Be punctual. Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score
Check your credit report regularly and take the necessary steps to remove inaccuracies. Don’t let your credit health suffer due to inaccurate information. If you find an inaccuracy on your
credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately. Watch your debt. Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.
Give yourself time. Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use. Avoid excessive inquiries. A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.