Improving Your Credit

The better your credit / credit score the better chance you have of getting a good loan / mortgage rate. So how do you improve your credit score?

• Check your credit report for errors You can get a copy of your credit report through the site http://www.annualcreditreport.com , you are entitled to 1 free credit report per credit bureau per year. If you find any errors then dispute them.

• Pay down your credit cards If you are carrying large balances on your credit cards then try and pay them off. Also pay off your balances every month. Please note that transferring balances between cards is bad for your credit.

• Don't max out your credit cards A maximum balance on credit cards is bad for your credit score.

• Wait a year after credit problems. If you have had credit problems and you wait for a year before applying for a loan then you are penalized less.

• Don't make big purchases. Don't make big purchases on your credit card or via a loan just before you apply for a loan.

• Don't open new credit card accounts.

• Shop for your mortgage all at once. Don't go to multiple mortgage lenders / brokers in order to get the best mortgage. Each one of these lenders will run your credit check which can be bad for your score.

• Avoid Finance Companies. These loans can be seen as a sign of poor credit management.

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