Tips For Managing Your Credit Score

Financing and Your Credit Score

Credit is an important component in helping you find the best loan product to meet your home-buying needs. The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better your credit, the more loan options you will have when choosing what’s best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

 

 

  • DO pay what you owe – regularly and on time.
  • DON'T skip payments.
  • DO have a checking and a savings account.
  • DON'T hold more than four credit cards.
  • DO sign up for automatic payroll deposit with your employer.
  • DO keep your total debt-to-income ratio under 36 percent. 
  • DON'T exceed or continually increase your line of credit.
  • DO keep track of your spending and stay within your budget.
  • DON’T continually open and close accounts; maintain a constant profile.

Your lender will view your credit report when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates and product features.

Not sure where you stand?
It's wise to obtain a copy of your credit report at least once a year in order to find your FICO score. You can obtain your report for free once a year from each of the three major credit bureaus at 
www.annualcreditreport.com. It’s especially important to figure your score before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary. 

In that report, you'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments and collections. Your home mortgage consultant should be able to help you better understand what your score means.  

You can get your credit report from many sources, but should you find something in your report that may be inaccurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly: 

Equifax: (800) 685-1111 or www.equifax.com 
Experian: (888) 397-3742 or 
www.experian.com 
TransUnion: (800) 916-8800 or 
www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you’ve handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home – and paying your mortgage on time each month – is a great way to rebuild your credit.

For this and more information call your Dallas Realtor Lisa Von Domek, and visit www.LisaSellsTexas.com!

 

 

www.LisaSellsTexas.com

 

Lisa Von Domek

 

Lisa Von Domek
BROKER/ASSOCIATE/REALTOR, 
ABR, AHWD, ALHS, ASP, BPOR, CAPS, CDPE, CGP,
CLHMS, CMS, CRS, CSP, e-PRO, GREEN, GRI, MRP, PS, QSC, SFR, SRES, TAHS, TRC
Lisa Von Domek & Associates, LLC / Real Living Real Estate Group 
Phone:      972-849-1300 
Email:        Lisa@LisaVon.com      
Website:   www.LisaVon.com

Multi-Million Dollar Consultant

Texas Licensed Real Estate Broker

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Lisa

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Comment balloon 52 commentsLisa Von Domek • October 17 2013 05:37PM

Comments

Good Evening Lisa

 

Thanks for the post and information. Have a great week

Posted by Patrick White, Driven to bring New Yorkers home (Home Driven Realty, Inc) about 5 years ago

Hi, Lisa -- some great tips to help keep the credit score as high as possible!  have a good night -- Eric

Posted by Eric Crane -- Your Full Service, Discount Fee Realtor®, Greater Metro Phoenix Arizona (DPR Realty LLC) about 5 years ago

Nice job with your post. All the tips you mentioned are so important. Good credit scores are so vital to the mortgage approval process.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 5 years ago

Hello Patrick,

You are welcome - credit scores are so important for consumers to take care of.  Enjoy your weekend!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Eric,

Thank you - paying attention to the score can save a consumer a lot of money (and headaches)!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Joe,

So true and taking care to protect one's scores is so important - and it is not that difficult to raise a score if one follows the basic steps!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hi Lisa.  Don't go out and buy a $35,000 car after putting a deposit down and before closing.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 5 years ago

Hello Conrad,

I advise everyone "buy nothing"...the new sofa for the hew house may not have a home if they can't get their loan!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Excellent tips on managing your credit Mrs. Von D.....very helpful information to those who may not already know.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) about 5 years ago

Great advice ...we also encourage people to use trade lines tracked by the bureaus and be diligent with prompt payments.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) about 5 years ago

Lisa, excellent "do and don't" list. Some people just don't have a clue how the process works! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 5 years ago

Absolutely crucial list of do's and don'ts for those that are planning on financing a home.  And, don't forget to hold off on buying the furniture and the new car till after you close on the home.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 5 years ago

Lisa, great tips for those managing a credit score.   This score is so important, and you need to be diligent in keeping track of how you doing.   Suggested.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 5 years ago

I really wish most schools had a class in the senior year that let's kids know about what credit and borrowing is like in the real world as well as general banking. I too have seen people who are so excited the buy something during the process for their new home and blow their Debt to income ratio. All good tips. I may copy this to give to prospective buyers who need to clean up their credit. Thank you for the info.

Posted by John Fauth, Turning your dreams into an address! (Coldwell Banker King Thompson) about 5 years ago

Lisa - Thank you for sharing an excellent blog about tips for managing your credit score.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) about 5 years ago

Hi Lisa,

Thank you for blogging about tips for credit scores. I did not know many of the items you had listed. I will have to keep them in mind.

Have a great day,

Trisha Bush

Posted by Trisha Bush-LeFore, Providing Realtor Services in the Walla Walla Area (Preferred Properties Land & Homes) about 5 years ago

I hope this post gets into the hands of many home buyers.  Great summary of credit vitality.

Posted by Jay & Michelle Lieberman, Creating Calm in the Buying and Selling Chaos (Keller Williams World Class) about 5 years ago

Hello Roger,

Thank you - keeping track of one's credit is vital and it is so easy to manage...if one takes the time!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Sally and David,

Yes, those can help make the difference on an approval or denial!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Wayne,

I really think it is a "must" class for juniors and seniors in High School...if they can drive, they need to be aware of how to manage their money!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Gabe,

Absolutely - as I mentioned in an earlier comment, I tell my clients to "Buy Nothing" before closing!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Joan,

Thank you for suggesting - it worked and my post is featured (Yippee!)  You can never be too young to start managing and maintaining your credit score!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello John,

I do agree, and I think there should be a mandated "life and how to manage yours" (LOL) for all juniors and seniors in high school!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello John,

You are welcome - credit how-to tips are too important not to share!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Trish,

Wonderful, I love to learn and share and I am so pleased that you found some tips new to you in this post!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Jay and Michelle,

Thank you - without good credit it makes it difficult to not only buy a home, but can make the difference in a career, car purchase and more.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Lisa, people have a lot more control over their credit scores than they think, and you provide some very good suggest for them to follow.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 5 years ago

Congratulations on the feature.  I went back 9 slots and can't find "us".  Very cool where Texas meets Massachusetts.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 5 years ago

Thank you for the great tips. I will bookmark this and share it with others.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 5 years ago
Lisa, good information for families wishing to purchase a home. Obtaining a credit report on an annual basis to check for potential errors is a good idea.
Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 5 years ago

Hi Lisa,  Thanks for the very nicely and orderly post. There are lots out there on credit and I find yours to be the best outlined. There are many homeowners out there that have lost their homes in the past few years and are in the process of rebuilding credit and perhaps ready to buy again...I am sure many have not been keeping a close eye on their credit report and are mainly concerned with how long since their short-sale. Your post is most helpful.

Posted by Blatt + Cutino, Broker-Associate 831/206-8070*Call today* (Keller Williams Coastal Estates) about 5 years ago
Lisa, great information for prospective buyers to follow. It's even more advantageous if they begin to practice these tips a year in advance.
Posted by Bill and MaryAnn Wagner, Jersey Shore and South Jersey Real Estate (Wagner Real Estate Group) about 5 years ago

Lisa, 


Good tips, especially for first time buyers.  Keep Credit cards below 15% of balance, but don't pay them entirely off is another important tip, have at least three credit trade lines, never close long established accounts even if you don't use them.  

Posted by Jared Garfield, Invest With The Best For The Highest Returns! (Rich Life Real Estate Team) about 5 years ago

Lisa, I think many folks get complacent about their credit score or simply do not have a clue what it is or what contributes to it. Thanks for this post educating us all about credit scores.

Posted by Kathy Stoltman, Ventura County Real Estate Consultant 805-746-1793 (Rockwood Realty) about 5 years ago

Thanks, Lisa, for your tips. It is good to have so many all in one place.

Posted by John Mosier, Prescott's Patriot Agent 928 533-8142 (Realty ONE Group Mountain Desert) about 5 years ago

Hello George,

Many people do not realize how some basic steps and monitoring will keep the score healthy!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Conrad,

Thank you, being featured is always fun but it does take some extra time so acknowledge all of the comments. 

I checked and again I follow your "How Can the Bank..."  with this post.  Click on the AR cloud on the upper left of the screen to see the featured blogs and scroll down...

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Gita,

Wonderful, thank you - share and share some more!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Michael,

Thank you - checking your report each year is a must, and since it is free it should be something everyone does!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Angelica,

Thank you, taking care of one's credit is vital.  And thank you for the reblog!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Once critical piece you left out that many dont think of is also DONT write checks you dont have the money in the bank to cover!

I cannot tell you the number of people I have seen cost them a mortgage due to a number of NSF's in the bank statement.

Good post and topic

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) about 5 years ago

Hello David,

You know that some things just should be obvious, but that is a good one to add!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Bill and Mary Ann,

These tips need to start young and stay in practice...but it's never too late for anyone to repair their credit!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Jared,

Maintaining revolving credit lines is something that catches many buyers by surprise - if they pay cash for everything, they don't realize that the lack of credit can hurt them when applying for a mortgage.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Kathy,

You are welcome, I am so pleased that so many have found this post helpful!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello John,

You are most welcome, keeping things simple makes them much easier to do!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Lisa, skipping one payment or just one negative remark makes a huge difference! Wish buyers take this seriously. Thanks for the tips.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) about 5 years ago

Great info, Lisa.  Every buyer should have a copy at the their first meeting with a Realtor.  Congrats on the feature.

Posted by Mike Cooper, Your Winchester, VA Real Estate Sales Pro (Cornerstone Business Group Inc) about 5 years ago

You can monitor your credit score for free at CreditKarma.com 

Posted by Jerry Lucas, Mobile Notary Colorado Springs, CO Notary Training (ABC Legal Docs LLC) about 5 years ago

Hello Prayful,

Many don't realize what just a few late or missing payments can do to their ovrall score - it will make the difference on an approval (or not) for their loan.

 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Mike,

Thank you - simple steps to maintain a good credit rating...and easy steps to follow to regain a good score!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

Hello Jerry,

I've been curious about that site as I just saw an ad for it today...it's not another of those bogus ones?

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 5 years ago

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