How to Maintain a Good Credit Score

As we’ve written before in a previous post, the importance of credit scores have risen drastically in recent years. Potential homebuyers must understand that a credit score is a very important factor in determining whether or not a mortgage lender will give you a loan.

Factors like credit cards, car loans, payment history and credit history will all determine your credit score. Here’s how to make sure your credit score is top-notchCredit Cards and Money

  • Keep tabs on your credit report – You can check it annually at Make sure to go over it carefully, and report any errors on the provided form.
  • Pay your bills on time – Not paying your bills will effect your credit rating. Plus, the longer you pay your bills on time, the better your credit score will be.
  • Keep your credit card balances low – Try to keep your credit card debt well below your credit limits. Pay off as much credit card debt as you can, paying off the cards that are closest to their credit limits first. Lenders like to see credit activity, but keep it to a minimum, otherwise, you look like a risky candidate for a loan.
  • Keep old credit cards open – When you close an old credit card, the issuer no longer sends updates to the credit bureaus and the credit scoring formula distributes less weight on inactive accounts. This means that losing that credit history can shorten your average credit age and cause your score to drop.
  • Limit applications for new credit – If you are new to credit, opening numerous new credit accounts could make you look like a risky candidate and will lower your credit age.

Hopefully these tips on maintaining your credit score will help you get on the right track with credit, and be on your way to applying for a mortgage. If you still have questions or concerns, don’t hesitate to contact The Mortgage Guys in Atlanta, GA.

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