WAYS TO INCREASE YOUR CREDITSCORE TO GET THE LOWEST

MORTGAGE RATESSOURCE‐WWW.HSH.COM

IF YOU'RE SEEKING THE BEST DEAL ONA MORTGAGE, YOU'LL NEED TO GIVEYOUR CREDIT SOME SERIOUSATTENTION.

YOUR MORTGAGE APPROVAL ISDECIDED ON THE BASIS OF CREDITREPORT AND SCORE.

KNOW WHERE YOU STAND

Your first stop on the path to a better mortgage deal is

creating a baseline. You have to know where you

stand in order to improve.

Get started by running your credit reports and getting

your credit score.

LEARN HOW YOUR SCORE WORKSYour FICO score is used by 90% of top lenders while making

lending decisions.

Your FICO score is calculated using both positive and negative

information in your credit report. The data breaks down into five

main categories:

Payment history: 35 percent

Amounts owed: 30 percent

Length of credit history: 15 percent

New credit: 10 percent

Types of credit used: 10 percent

ELIMINATE DISPUTED ACCOUNTSCredit report errors that have been disputed are labeled

as disputed accounts on your credit report. And those

disputed accounts have to be closed before you apply for

a loan.

You can remove disputed accounts by contacting the

credit bureau and information provider and asking to

have the accounts removed out of dispute.

PAY BILLS ON TIMELate payments and collections leave major blemishes on

your credit report, according to myFICO.com.

Paying your bills on time and avoiding late payment is the

only way to keep a positive payment history.

And the only way to improve upon a payment history is

by annually reviewing your report to keep a look out for,

and correct, possible errors.

USE CREDIT WISELYThere are three golden rules for maximizing your FICO score:

1) Pay all bills on time, every time

2) Keep balances on credit cards low

3) Apply for credit only when you need it

If your goal is to improve your credit score and qualify for better

rates and terms, then manage your household cash flow.

Having better household cash flow will reduce the risk of late

payments.

DON’T CLOSE ACCOUNTS

Don't open or close accounts prior to applying for a

mortgage loan,it can negatively impact your score.

One way that closing an account can impact your credit

score is the credit utilization calculation.

If the balances on their remaining credit cards remain the

same, then the consumer's utilization rate will increase.

THANKYOU                                             

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