Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Your credit is one of the most important things that you have in your financial life. If you have lost control of your credit, you need to regain that control as soon as possible. Here are a view strategies to regain control of your credit.
1. Pay Credit Card Balance Monthly
One of the best things that you can get in the habit of doing is paying off your credit card balance monthly. Credit bureaus do not like to see balances that are left on credit cards. If you get in the habit of maxing out your credit card and then leaving the balance on there, this is going to have a negative impact on your credit score. If you cannot afford to pay off the balance in full every month, you need at least to get the balance down to below 30 percent of your credit limit for the card. If you can do this, you will see that your credit score starts to climb slowly over time.
2. Checking Credit Reports
You should also regularly check your credit reports. You can actually get a free copy of your credit report from the three major credit bureaus every year. After you have looked at your free report, you should also consider accessing your credit report again throughout the year. By doing this, you will be able to see what changes have been made to your credit file. Every credit bureau reports different things on your file. This makes it important for you to look at all of the creditor reports from the different bureaus.
When you get copies of your credit reports, you will also need to verify that all of the information on them is correct. It is not uncommon for credit bureaus to attribute information that is for someone else to your credit report. If you are regularly monitoring your report, you can find these mistakes and have them corrected.
4. Remove Old Info
When you are reviewing the information on your credit reports, you should also look for old information. For example, if your credit report is still showing an account that you paid off and closed years ago, you may want to have this removed from your report. In order to do this, you need to contact the credit bureau and inform them of the old information. Typically, it will take 3 to 4 months before the information is removed from your credit report.
5. Find Out Why You Are Denied Credit
If you apply for credit and are denied, you will want to do your best to find out why. Ask the creditor what the problem was with your application. This will allow you to zero in on potential problems and devote some time to fixing them. For example, they might tell you that you have too many credit accounts open. This will give you the information that you need to fix your credit and make yourself more attractive to future creditors.
- 3 Warning Signs of Loan Modification Scams
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Common Short Sale Mistakes
- What Lenders Don't Reveal About Home Equity Loans
- What To Do When Mortgages Default
- Should You Refinance? Make Sure the Timing is Right
- Appraisal Basics
- How to Get Approved for an FHA Loan despite Bad Credit
- Low Down Payment Loan Qualification