A stellar credit score is crucial when it comes time to garner a loan for home purchase. Here are some easy things you can do to ensure yours stays at a healthy level:
Credit cards you currently have:
Look at your credit card limit, and subtract 70% of the limit amount. Never charge greater than this amount. This will equal 30%.
If no current active credit cards in the last 6 months:
Apply for 2 secured credit cards as soon as possible. Remember, once these new cards are opened, your score will drop for for 6-12 months. But, it is better to drop your score now than wait until it is too late.
If you have open credit cards with zero balances and have not charged it for more than 6 months, charge a small amount such as 5% and immediately pay it off.
Do not close credit cards you currently have: This will dramatically lower your score.
Do not open ANY new accounts without consulting your mortgage professional first: In most cases, opening a new account will lower your score for 6-12 months.
New lates, collections, charge offs, bad debt of any type:
Will lower your score as much as 107 points, even a late payment of $5.00 can cost you your loan and credit score.