When you are shopping for a home loan, it’s important to maintain your credit score. Below are some suggestions, from Trident Mortgage Company, for handling your credit while searching for a home:
- Do not consolidate all your cards onto one card.
- This will most likely change your ratio in a negative way.
- Do not request to lower your limit on a credit card.
- If you do, the ratio will increase. This will lower your credit score.
- Cancelling older cards can be a mistake.
- Some people may worry that lenders might not like that they have so many cards. The problem is that lenders like to see that you have a long term record of credit.
- It is a bad idea to close an account which has a balance. However, if you raise your limit you can lower your overall ratio and improve your score.
- You will need to be disciplined and make sure that you don’t use the extra funds you now have available.
Contact Damon or one of our preferred mortgage lenders for more information.
