Many people are looking to refinance or apply for a new mortgage to take advantage of the incredible low rates. There are a few tips to keep in mind in order to maintain the highest score possible and achieve the lowest rate available to you.
Credit monitoring agencies value long term credit. That means that the oldest credit card accounts that you have and most likely your most valuable. Like good wine, credit card accounts get better with age. So to maintain a higher score, don’t close old accounts.
On the other hand, opening new credit can really damage a credit score. If you are in the process of applying for a mortgage or planning to in the near future, don’t apply for any new credit. Maintain the accounts you have in good standing and be sure to keep credit card balances 30% below your credit limit.
Most importantly, use your credit normally maintaining the pattern you are accustomed to. Pay everything in a timely fashion and if you have any questions, check with you mortgage banker.