How to Improve Your Credit

In today's mortgage market, it's imperative to have the highest credit score you can.

Instructions

Difficulty: Moderate

1. Check for and correct mistakes in your credit report. You might be paying for someone else's oversight.
2. Pay down all credit card bills. If you can, pay down the whole balance each month. Transferring debt from one credit card to another may lower your score further.
3. Don't ever charge cards to their maximum limit.
4. Wait at least one year after credit problems to apply for a mortgage.
5. Don't buy any big-ticket items for your new house on credit cards until AFTER the mortgage loan is given the thumbs-up. This would add to debt.
6. Don't open new credit card accounts before applying for a mortgage loan.
7. Shop for mortgage rates ALL AT ONE TIME. Multiple inquiries from the same type of lender are registered as one inquiry if submitted over a very short period.
8. Steer clear of finance companies. Even if you pay down your loan on time, the interest is high and it'll probably be look on as a sign of poor credit management.