These days it is very important to protect your credit score. Getting a great deal on a new home loan is easier if you have a great credit score. At Willow Creek Lending, we feel that it is important to educate our clients so that they can get the best possible rate on any loan.
Here are some very important tips to a great credit score:
Pay your Bills on time
You should pay all of your bills on time but especially those that are connected to your credit like: Mortgages, Auto Loans, Personal Loans, Credit Cards and other revolving loans.
Guard yourself from Identity Theft
Be very careful who you give your Social Security Number to and make sure that they keep it safe. Shred your bank statements, credit card statements and any other financial documents before you throw them away. When you receive an email from what looks like your financial institution be very careful. Make sure that the email really is from your financial institution before you click a link because more often than not the email isn't really from your financial institution but rather from someone who is attempting to steal your identity or financial information.
Don't close credit accounts
Most people think that fewer credit accounts are better than more and that if they close their accounts that the banks should see that as a sign of financial responsibility. However, open credit accounts with or without a balance that are in good standing help your credit score.
Pay off any collections
Avoid being sent to collections at all costs, but if you can't avoid it; make sure that you pay those collection accounts off as quickly as possible. Having an open collection on your credit report can prevent you from getting a new mortgage.
Watch your credit balances
Pay down any high balances that you have. Lenders don't like to see loans or credit card balances that are at or near their credit limit. In some cases you can request that your credit card company increase your credit limit and it can improve your credit score slightly.
You'll always be glad to have a high credit score. Take care of your credit and it will take care of you.
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