Exciting Inside Tours of Homes

View Area Listings

Meet Our Agents

Commercial Services Group

Career Opportunities

Contact Us

Your credit score can affect many aspects of your life. The biggest, perhaps, is the ability to secure a mortgage should you be in the market for a home. The better the score you have, the less your debt will cost you in the long run. It's important to take control of your credit score before beginning the buying process. If you want to boost your score, here are a few tips to get that number heading in the right direction.

If you don't know what your score is or you are worried it might have errors, don't hesitate to contact one of the three big credit bureaus and request a report. Each bureau is required to give every requesting consumer one free report once a year. Check your report for errors and get them corrected as soon as possible. Send the credit agency a certified letter explaining what is wrong and include any documents that may support your claim. You don't want your score to suffer due to inaccurate records.

If you have missed any payments in the past, catch up as soon as you can. Within a few months, your score will improve if you get current and stay current. The negative weight on your score will lessen over time, erasing the negative marks from your record for good. Once you are current, do everything you can to ensure that payments are on time.

Going forward, keep your balances below your limit. Just because you have a certain credit limit doesn't mean you have to use it all. The less available credit you use, the better. Some credit card companies have been lowering credit amounts without telling consumers. If this happens to you, it could negatively affect your credit score because your utilization ratio will increase. The bureaus recommend using 33 percent below your available credit. Remember, a small amount of debt on multiple cards is better than having just one or two cards with a large bulk of debt. Spread out your spending, and keep those balances low.

Keep old accounts open...even if you don't use them often. Part of your score is based on how old your accounts are. Closing older accounts erases the credit history that was accumulated through those accounts. To prevent a credit card company from closing your account, use it every now and then to keep it active. Even miniscule charges will suffice and protect your account and history.

Don't be afraid to check your score as often as you want. You checking your own score is seen as a "soft inquiry" by the credit bureaus. By checking often and properly managing your debt, you can be well on your way to raising your credit score.

Source: WalletPop