Golden Rules of Credit (What You Want To Know Wednesdays)

The better your credit score is, the better your interest rate will be for a mortgage loan.

The 3 golden rules to follow are: 1) Pay all your bills on time, every time. 2) Keep your credit card balances low. 3) Open new credit only when you need it.

The length of your credit history is very important. When attaining a home loan the Lender will look at a minimum of 2 years of credit. Many people believe that closing unused accounts will reflect well on your account, however, the opposite is true.

If you decide that you want to close accounts, make sure to leave the ones you’ve had the longest open; regardless of the interest rate. You do not want to lose the history you’ve established with your older accounts.

If you have more than one card, spread out your balances. It is best to keep each card at about 20-30% used as opposed to having a few cards at 0% and one at 90%.

The biggest way to protect and improve your credit score is to make sure to keep an eye on it. There are free sites that do not ding your credit and help you see where you’re at.

                                                                                                                                *Brought to us by Bankrate.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.