How to Protect Your Credit So You Can Get a Good Fixed Rate Mortgage

Your credit history and credit score are two important factors that determine what type of interest rate you are offered on home loans. Protecting your credit requires becoming proactive and taking steps to prevent ruining your credit or becoming the victim of identity theft.

  1. Review your credit reports annually. Get in the habit of requesting your free annual credit reports each year to ensure there is nothing that should not be on there.
  2. Monitor your credit score and changes to credit reports monthly. Most financial institutions and credit card companies now offer free monthly credit scores that also include a summary of information on your credit report.
  3. Never discard documents with personal information in the trash. Any financial statements, bank statements, or other documents that contain personal and sensitive information need to be shredded before you dispose of them.
  4. Keep revolving credit card balances at 30% or lower. If you exceed this amount, it will lower your credit score.
  5. Dispute any irregularities as soon as possible. If you notice unusual charges on statements or new credit accounts or even collection accounts on your credit report, these need to be disputed

By being vigilant, you can identify potential problems sooner and protect your good credit. If you are getting ready to purchase or refinance a home, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 to find out current interest rates on our different loan programs.