With all the changes going on in the financial industry it is getting harder to get financing for a home purchase and now your credit score directly corresponds to the type of mortgage and the interest rate you qualify for. Having good credit can save you thousands of dollars a year on a home mortgage.

Here are some tips to help you maximize your credit scores!!

1- Pay your bills on time! Setting up automatic payments with your account holders or with your banks can take the work out of paying bills. But make sure the payments are received before the due date on your monthly statement.

2- Balances on Credit Cards. Keep your balances on credit cards and other revolving accounts below 50% of your credit limits. 30% is optimal and will result in the absolute best credit scoring. You want your credit debt to be distributed through all your credit card accounts.

3- Keep your credit cards open. Unless you have over 6 major credit cards, or the account has been opened less than two years, closing out credit accounts can actually hurt your credit score. Credit scoring programs assume that people who have had an account for a longer time are less of risk in defaulting on payments. Charge something on your accounts every month. It can be one tank of gas a lunch, anything small will do.

4- Pay off delinquent accounts that are not in charge-off status.

5- Get rid of any charge-offs or leans that are less than 24 months old. These effect your rating far more than those that are more than 24 months old.

6- Don’t open any 90-day same as cash accounts. When you shop for large items like, furniture, big screen TV's, large appliances, do fall for the 90-day same as cash account. This will drop your credit score once opened. Also, SAY NO when offered 10% -15% if you open a new account with us today!!

7- Credit scores are higher when you have a good mix of open accounts/trade lines reporting. 2-4 credit cards, 1-2 cars, 1-4 mortgages. This is a good example of what they would consider a good mix of credit

Review your credit at least once a year to make sure the information being reported is accurate. This can be done with a free source like www.freecreditreport.com.

Please let me know if you have any questions or if you would like me to look at your credit to see if there are areas to improve.

Lisa Keese is a Professional Mortgage Lender in Burleson, TX. If you’re ready to purchase, build or refinance your current mortgage, allow me the opportunity to see what I can do for you. Email me at lkeese@servicefirstmtg.com or call me at 817-233-9226.