ways to improve credit rating?

[SeekerMage]

Our credit is far from perfect and we would like to look into getting a new house by the end of the year....what are ways to improve our credit rating as fast as possible?

[RwnMayfair]

We're buying a home ourselves this summer, and our mortgage counselor (or whatever his title is) gave us some very specific tips on how to improve our credit rating. Credit ratings can vary from person to person and couple to couple, as can how they get the way they are. My suggestion would be to talk to a mortgage counselor about how you could improve your credit rating - basically, what can you all do to help get a better mortgage?

Now, our mortgage counselor was recommended by our realtor, and I grew up next door to her, so I don't know how weird it would be to seek one out on your own. But I'd at least make sure it was a reputable company and that you're comfortable with the counselor. :)

As for specific tips, here are some of the tips we were given that might help you all. Your debt should be paid down as much as possible - credit cards should be at at least 50% of their limit if not less than 50%, since that will apparently help immensely with your credit rating. Obviously, the more debt you have, the worse off you are. It's also best if you've been paying everything on time and have basically been showing you're reliable. (Not that that's a problem for us, he just commented that it was a good thing on our credit report.) Having had cards that have been open for a long time as well can help, rather than constantly opening and closing accounts. (I cannot for the life of me remember exactly why he said having long-term accounts helps, though I know it made a lot of sense at the time and is what has kept us from closing two credit cards that have nothing on them that we otherwise weren't interested in keeping.)

Overall though, you'd be able to get more specific tips on how to improve your credit report in terms of getting a mortgage by talking to a mortgage counselor. So I dunno how helpful this was since it wasn't too incredibly specific, but hopefully it helps a little bit. :)

-Melissa

Taran Reed - Nov, 20, 2003