Lenders like fiscally responsible clients. Not to mention, if you have sound financial history you’ll be eligible for better rates that could ultimately save you tons of money. To help improve your credit rating, here are some invaluable tips:
a) Pay Down Outstanding Debt – To get a loan, you need to have credit but little debt, plus you have to show a history of managing your debt responsibly. Pay down your line of credits, credit cards, and other loans to help secure your maximum amount for your mortgage loan etc.
b) Pay Your Bills on Time or Early – every bill counts, phone bill, cable, internet, garbage, water, heating etc. Be diligent with paying these off, and on time.
c) Avoid Credit Checks – try to avoid any unnecessary credit checks for a good 6 months before you start shopping for your loan.
d) Clear up Credit Issues – if you have outstanding credit issues on your report, try to work with your creditor to have them removed or waived.
e) Avoid Applying For New Credit – Taking on new credit cards or lines of credit ultimately diminishes the amount of credit you have available to you. Don’t make this common mistake.
f) Make Large Payments if you’re only making the minimum payments on your credit cards, you’re in trouble. It’s okay to revolve a balance from time to time, but make sure you’re making substantial, continuous payment to reflect your intent to pay off your debt.