TIPS TO IMPROVE YOUR CREDIT SCORE

★ Always pay your bills on time

★ Pay down your credit card balances

★ Never max out your credit cards

★ Pay off debt rather than moving it around

★ Don’t open more credit cards than you need

★ Shop for loans within a focused period of time

★ Regularly check your credit report

CREDIT REPORTING AGENCIES

You can check your credit report annually for free from each repository below:

– Equifax 1-800-525-6285

– Experian 1-888-397-3742

– Trans Union 1-800-680-7289

CREDIT DO’S AND DON’TS

GET PREPARED TO APPLY FOR A LOAN

Loan preparation is the most important step to prepare for the loan application process.

Underwriting is the last stop for loan approval and due diligence requires they identify any recent changes in your finances, spending habits, and alterations to your credit or bank accounts.

Any one of these issues can raise a red flag and extend the loan process. Plan ahead and follow the guidelines below.

Credit DO’s

  • Stay current on existing accounts
  • Continue to use your credit as normal
  • Keep records of credit use
  • Call your mortgage professional with any questions or concerns about your credit
  • Save your money, you may need it for closing costs
  • Maintain your current employment
  • Be prepared for full financial disclosure
  • Talk with your Michelle Leesmann before making large deposits into your bank accounts

Credit DON’Ts

  • Don’t apply for new credit
  • Don’t close credit accounts
  • Don’t max out credit cards
  • Don’t make major purchases including furnitures or vehicles
  • Don’t consolidate your debt
  • Don’t pay-off collections or “charge-offs”
  • Don’t become self-employed or 1099
  • Don’t omit liabilities from your application
  • Don’t change bank accounts

It’s never too soon to start
building your own equity