Is Your Credit Home Buying Ready?

Many homebuyers now and into the foreseeable future will face tight lending standards and the need to improve their credit score
to get pre-qualified or pre-approved for mortgages. If you are thinking of buying a home soon, below are some good tips for assessing your credit-worthiness. This is certainly not an all-inclusive list, but it’s a great start for preparing to get pre-approved for purchasing a home.

Credit Card Wisdom
• Paying revolving credit cards down is generally more beneficial than paying down student,
mortgage or auto loans.
• Always leave a 30 percent or higher gap between what you owe on the card and the card’s
limit. Lenders look for this minimum gap.
• Use cards with care even if you pay off balances each month. Depending upon statement
dates, the lender may see big balances.
• Pay down the cards closest to their limits first for speedier credit repair. The lending bank
will then see the “gap” it wants to see.
• Do not ask a creditor to lower credit limits. Generally, carrying smaller balances on several
cards is better than one large balance on one card.
• Check your credit card limits to make sure the report is correct. Limits may not be reported
on all cards.
• Never make a late payment on credit cards or any loan.
Protesting Items
• Protest any unjust negatives such as late payments, collections that are not yours and any
items not reported as “paid as agreed” if you paid on time and in full.
• Protest items listed as unpaid that were included in a bankruptcy, and items older than
seven years (10 for bankruptcy).
• Focus first on the larger, newer negatives listed on the report.
Don’t worry about smaller items like incorrect address information or an old employer listed
as current unless there’s the possibility of identity theft or the file is mixed with someone


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