Some credit dos and don'ts

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Real Estate

Credit Dos and Don’ts - Good credit is critical to obtain the best interest rate and terms on a mortgage.

by Micheal Neill, V.P of Mortgage Lending at Guaranteed Rate. 

Do stay current on existing accounts -One 30-day late notice can compromise your ability to be approved.

Do continue to use your credit as normal - Changing your pattern will raise a red ag and can lower your credit score.

Do call your mortgage loan professional first - If you have any questions or concerns, always contact your mortgage professional.

Don’t apply for new credit -Every time you have your credit pulled by a potential creditor or lender, you will lose points from your credit score. This includes co-signing for a loan or applying for new credit.

Don’t max out credit cards

Do not use more than 30% of your available credit limit during the loan process. If you pay down balances, do it across the board.

Don’t consolidate your debt -When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card, and your credit scores will suffer.

Don’t close credit card accounts - Closing a credit card account negatively impacts your credit history.

More Don'ts later


If you have any mortgage questions contact Michael Neill directly at 760-883-1764