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7 Tips for Improving Your Credit !
Article From BuyAndSell.HouseLogic.com
By: G. M. Filisko
Published: February 25, 2010

Here's how to clean up your credit so you get the least-expensive home loan possible.

Getting the loan that suits your situation at the best possible price and terms makes
home buying easier and more affordable. Here are seven ways to boost your
credit score  so you can do just that.

1. Know your credit score
Credit scores range from 300 to 850, and the higher, the better. They're based on whether
you've paid personal loans, car loans, credit cards, and other debt in full and on time in
the past. You'll need a score of at least 620 to qualify for a home loan and 740 to get the
best interest rates and terms.
You're entitled to a free copy of your credit report annually from each of the major credit-
reporting bureaus,
Equifax (http://www.equifax.com), Experian (http://www.experian.com),
TransUnion (http://www.transunion.com). Access all three versions of your credit
report at www.annualcreditreport.com (
http://www.annualcreditreport.com). Review them
to ensure the information is accurate.

2. Correct errors on your credit report
If you find mistakes on your credit report, write a letter to the credit-reporting agency
explaining why you believe there's an error. Send documents that support your case, and
ask that the error be corrected or removed. Also write to the company, or debt collector,
that reported the incorrect information to dispute the information, and ask to be copied on
any materials sent to credit-reporting agencies.

3. Pay every bill on time
You may be surprised at the damage even a few late payments will have on your credit
score. The easiest way to make a big difference in your credit score without altering your
spending habits is to diligently pay all your bills on time. You'll also save money because
you'll keep the money you've been spending on late fees. Credit card or mortgage
companies probably won't report minor late payments, those less than 30 days overdue,
but you'll still have to pay late fees.

4. Use credit carefully
Another good way to boost your credit score is to pay your credit card bills in full every
month. If you can't do that, pay as much over your required minimum payment as possible
to begin whittling away the debt. Stop using your credit cards to keep your balances from
increasing, and transfer balances from high-interest credit cards to lower-interest cards.

5. Take care with the length of your credit
Credit rating agencies also consider the length of your credit history. If you've had a credit
card for a long time and managed it responsibly, that works in your favor. However,
opening several new credit cards at once can lower the average age of your accounts,
which pushes down your score. Likewise, closing credit card accounts lowers your
available credit, so keep credit cards open even if you're not using them.

6. Don't use all the credit you're offered
Credit scores are also based on how much credit you use compared with how much
you're offered. Using $1,000 of available credit will give you a lower score than having
$1,000 of available credit and using $100 of it. Occasionally opening new lines of credit
can boost your available credit, which also affects your score positively.

7. Be patient
It can take time for your credit score to climb once you've begun working to improve it.
Keep at it because the more distance you put between your spotty payment history and
your current good payment record, the less damage you'll do to your credit score.
Other web resources.

How FICO scores are calculated (

Answers to frequently asked credit report questions (
G.M. Filisko is an attorney and award-winning writer who keeps a close eye on her credit
scores. A frequent contributor to many national publications including Bankrate.com,
REALTOR® Magazine, and the American Bar Association Journal, she specializes in
real estate, business, personal finance, and legal topics.


Please call me today with your
questions !
Debbie Morreale, Realtor
Call or Text:
Email:   DebMorre@yahoo.com

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