Credit scores play a big role in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by following these steps. 

🔸Check for errors on your credit report. 

Thanks to an act of Congress, you can download one free credit report each year at Annualcreditreport.com.  If you find any errors, correct them immediately.  

🔸Pay credit card bills.  

If possible, pay off the entire balance monthly.  Transferring credit card debt from one card to another can lower your score.  

🔸Do not charge credit cards the maximum.  

Pay down as much as you can every month.  

🔸Wait 12 months after credit difficulties to apply for a mortgage.  

You are penalized less severely for problems after a year. 

🔸Do not order items for your new home on credit.  

Wait until after your home loan is approved to charge appliances and furniture, as that will add to your debt. 

🔸Do not open new credit card accounts.  

If you are applying for a mortgage, having too much available credit can lower your score.  

🔸Shop for mortgage rates all at once.

 Having too many credit applications can lower your score.  However, multiple inquiries about your credit score from the same type of lender are counted as one if submitted within a short period of time.  

🔸Avoid financial companies.  

Even if you pay their loan on time, the interest is high and this can be considered a sign of poor credit management.