Shopping for Your Home

Wednesday, October 22, 2008

Ways to Improve a Credit Score

Michael Fawver
Manager / Sr. Loan Consultant
International City Mortgage
Phone: (562) 754-4744
Fax: (562) 683-0427

With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.

If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.

Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.

With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.

There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.

Great tips from my top notch mortgage guru!
I can't stress enough to all you first timers out there as well as you wise investors; THIS IS THE TIME TO BUY!!! Don't miss the boat, contact me and we will start a "plan of action" The sooner we start, the sooner you will get the keys to your new home or investment property.
See You Around The Neighborhood!