Get your credit score up!

Maybe your credit isn’t so good, or maybe it is okay, but you’d like to make it better so you pay less interest on your modular home construction loan!  First check your credit score, which can range from 300 to 850, and aim for a score higher than 760 - you can do this at www.myfico.com .  OR, got to any of the three major reporting companies for a free report every 12 months - go to www.annualcreditreport.com.

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to reduce losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue.

So, with a view to getting your credit score up, here are a few things to keep in mind.

1. Get a credit card if you don’t already have one.  Using a credit card or two can help to build your score. (Caution, do not apply for too many cards at once.)

2. Get an installment loan too.  Student loans, personal loans, mortgages and auto loans all help show you are responsible with credit.  Again, pay these off ON TIME!

3. Pay down your credit cards. Lenders like to see a big gap between the amount of credit you’re using and the available limit.  Keep your balances below 30% of the credit limit and this will help your credit scores.

4. If you have big balances on your credit cards this hurts your credit, EVEN IF YOU PAY YOUR BILLS ON TIME EACH MONTH!

5. If you slip and make a late payment, supposing you are a good customer, a lender may agree to erase the one late payment from your credit history.  This is one of those “it doesn’t hurt to ask” situations!

6. Check your credit report carefully to make sure there are no errors.  File a dispute with the credit reporting agency that gave you your report.  You can do this online, in writing or on the phone.

7.  Keep old credit cards, and do not cancel them.  Shred them if you must, but don’t cancel them!