Tips for Raising Your Credit Score

Regardless of where you shop for a home mortgage, most companies will run your Fair, Isaac and Company (FICO) score. This score tells the mortgage company if you use debt responsibly. Before you visit the best loan officers in Las Vegas to apply for a loan, follow these tips to bring up your FICO score.

Get Your Report

You need to know what is on your credit report before the mortgage company or other lender looks at it. You are allowed one free report annually from each of the top three credit reporting agencies. When you get the report, check to see if there are any errors on it. Report those errors to the credit agencies immediately, and be sure to provide any evidence you have that the report is a mistake.

Keep Balances Low

Each credit card that you have has an available balance on it. Learn that number by checking with the credit card company. Then, charge no more than 30% of the available balance to any card. Do not, however, close credit cards. That can actually hurt your credit score. Even if you have a zero balance, leave them open. It is best to use every credit card at least twice a year.

Pay Bills on Time

While many people concentrate on paying their credit cards on time, it is not the only type of debt considered when figuring your FICO score. Therefore, make sure that you pay your utilities and medical bills on time as well because these businesses often report to credit agencies. Likewise, if you have bought any furniture or appliances on credit, make those payments on time, too.

Make All Inquiries Together

Except for the free annual reports, checking your score reduces it. Therefore, if you are looking for a loan for a new home, an automobile, or some other purpose, group all these inquiries together. The credit agency will only lower your score once in 90 days for making these inquiries.

While many loan officers are simply pencil pushers, you want to deal with a friendly officer with great customer service skills.