Credit Tips

Are you ready to head down the road to homeownership? The Mortgage Store encourages consumers to follow these tips to improve their credit score and profile before applying for a mortgage.

• All credit card balances should be paid to below 30% of the available credit balance.
   
• Do not consolidate credit card accounts to one or two cards and close out other accounts. Consolidation of your credit card balances will noticeably distort the appearance of your credit use. Having a low balance on a few cards is better than having high balances on several cards.
   
• Keep the number of credit card accounts you have open and actively use to a minimum number. Do not close accounts without the advice of a knowledgeable mortgage broker.
   
• Review your credit report for accuracy for at least a 90-day period before applying for a mortgage. Have any inaccurate information corrected at the repository that is reporting the faulty information on your report. Also, you may ask for a credit dispute form from your mortgage broker. Attach any documentation you have to support your claim and mail the form to the reporting repository with a return receipt requested. Within 30-days the repository will modify any corrections. A request for an updated credit profile can then be made. 
   
• Paying off a collection account or judgment will not eliminate it from your credit profile. Paid or satisfied negative credit items will show a zero balance, but will not disappear from your credit profile for a seven-year period. A late or collection account will still be reflected on your credit profile even if it has been paid off recently.