I Love Portland Homes

Thinking of buying a home next spring or summer? Now is the perfect time to check your credit and start getting it in order!  A good credit score can make a big difference in the interest rate a lender will offer you…which can mean huge savings over the life of the loan.

First, you’ll want to review your credit report to check for accuracy and see what areas could use improvement. If you have charges you need to dispute, it can take 60-90 days for them to be resolved and have the change show up on your report (that’s why it’s a good idea to take care of it now!).  Order a free annual credit report (if you haven’t already done so this year) at www.annualcreditreport.com.  It’s a good idea to check your report from EACH of the three major reporting companies (Equifax, TransUnion, Experian), as they may not all be the same. 

Once you’ve reviewed your credit reports it’s time to start improving those credit scores! The best way to find out what will improve your score is to meet with a mortgage professional who can review your report and make suggestions tailored to you. Here are some tips that anyone can use to improve credit scores:

1. Pay your bills on time and always pay at least the minimum amount due.
2. Keep balances on all credit accounts at least 30% below the credit limit.
3. Don’t credit surf (ie. transferring balances from card to card, opening and closing accounts as you go).
4. Making two payments per billing cycle that add up to at least the minimum amount due shows that you can budget your money and are responsible. Doing this regularly for 6-9 months can increase your credit score.
5. Find the right balance of number of accounts to keep open. If you’re going to close some accounts, keep your longest standing accounts open and close newer accounts. Established credit history is better for your score than new credit.  This is where a mortgage professional could help you decide which accounts are best to keep open and which should be closed.
6. Major credit cards are better for your score than department store cards and accounts.
7. Opening too many accounts in a short period of time can greatly decrease your score.

If you’d like to find a qualified mortage broker to help you improve your credit so you can get a good mortgage, just let me know. I’d be happy to pass along some names.