8 Ways to Improve Your Credit

Ensure that you'll qualify for a loan for your Vermont property with help from Lake Champlain Islands Realty.

1. Check for and correct errors in your credit report.

2. Pay down credit card bills, perhaps by transferring debt between cards. If possible, pay off the entire balance every month.

3. Don't reach your credit limit when charging.

4. Wait 12 months after credit difficulties to apply for a mortgage. You're penalized less for problems after a year.

5. Don't order items for your new home you'll buy on credit such as appliances until after the loan is approved. The amounts will add to your debt.

6. Don't open new credit card accounts before applying for a mortgage because having too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies--interest is high and it will probably be viewed as indicative of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission to Coldwell Banker Islands Real Estate from the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit http://www.homebuyingguide.org.