How can you improve your credit score?

Although rare, some people are surprised when they pull their credit and find a mistake that has dropped their credit score from the "good range" to the "below average range"  This can affect their ability to qualify for a home loan and the interest rate you will pay.  Having the highest credit score possible can save thousands of dollars in interest charges.

It is possible to change your score quickly with a credit processing program called "Creditexpert".  "Creditexpert" allows you to change your credit score in a short period of time, (usually 1 to 2 weeks). You will have to provide documentation that proves the mistakes on your credit report were not your fault.  It will probably involve a lot of phone calls and follow up, however it will be well worth it.  Mathews Mortgage offers "Creditexpert" to our clients.  Our staff has the experience to help you through this paperwork jungle.  Feel free to contact us for more details.

Here are some other strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.

Dont "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.

It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.