Financial institutions use your credit score mortgage loans to determine the rates they will charge you. Before you start shopping for a mortgage, you should first find out what is on your credit report and see how it is affecting your credit score. Be sure to get your credit report from all three of the credit bureaus. Carefully exam all the information that is contained in the reports so you can best determine the course of action that will raise your credit score the most points in the least amount of time.
Any errors that are being reported should be disputed by you. Erroneous information can lower your credit scores needlessly. Things that should be disputed include any late payments, charge-offs and collections that are not yours or have passed the time they should have been removed, usually seven years. Because seven years is when things age off the report, make sure that all information is current. It is also important to dispute anything not showing as current or paid as agreed.
It is important to be sure that all credit limits are being reported at the correct amounts and that the date of last activity is correct. For anything that is verified in a dispute, you should then seek validation of the items to prove that they are yours. If an account is legally verified, pay off the debt and ask that it be removed from your report or ask that it show paid in full as agreed. This will help raise your credit score mortgage.
You should pay down your credit card debt. It is important that the accounts not be at their limits. An easy way to add points to your credit score is to pay down this debt with a goal of the balances not be more than 50 percent of the limit. It is important to not close any of the accounts, especially older accounts as they show credit worthiness and will lower your score if closed. It is important to pay all debts on time. With a few simple steps, you can increase your credit score mortgage loans.
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