How to get a great credit score!!!

Most of us want a great rate for our mortgage. If we have a great credit score that will help. Here are some hints that over time will increase that score.

 Pay on time. Paying 30days late can lower a persons credit score. About one third of a credit score is based on a persons payment history. Even one late payment can lower a persons score.

If a person already has late payments try to get caught up and make payments on time or a few days early if possible. Over time that will increase the damage done with the late payments.

Keep credit card balances below 30% of the credit limit on each card. Even below 25% if possible. Another third of the credit score is based on the cards balances. For every point above the 30% there are corresponding decreases in a persons credit score. If you do pay off the credit card, don't cancel it, it does not help to have less credit available, just leave it dormant.

When you are coming closer to the time to apply for a mortgage don't apply for any new credit cards, lines of credit or purchase some of the offers of don't pay until sometime in the future because your credit score will be checked by anyone that is trying to sell you this thing on credit and the more your credit file is checked the more negative it is to your score. If you follow some of these guidlines your credit score should increase and will help you to get a better rate on your mortgage.

Still always check with your mortgage broker or banker to find out what they look for and what they would suggest you do to increase your credit score.

Feel free to print this for your own use.  

Published 10 October 07 06:25 by Clark Hitchcock

Comment Notification

Subscribe to this post's comments using RSS

Comments

# Carin said on December 16, 2007 9:26 AM:

Canadians can save money by insuring their mortgage with term life insurance. This alternative is generally much cheaper than bank mortgage insurance, and the premiums are non-taxable. Term life allows the homebuyer to name the beneficiary, not the bank. For those interested in long range financial planning, there are term life policies that can be converted to whole life insurance once the term has expired, usually without any additional medical information.

Leave a Comment

(required)
(optional)
(required)
 
 
 
 

This Blog

Syndication