Know Your Credit Score & Make Improvements if Necessary
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.