By Darlene R. Stiefel, Residential Loan Officer, Crest Savings Bank
An important step to finding a home, whether you’re renting or buying, is ensuring that you have a good credit history. Crest Savings Bank suggests the following tips to improve your credit score.
- Request a copy of your credit score report, and make sure it is correct. Your credit report illustrates your credit performance, and it needs to be accurate so that you can apply for other loans such as a mortgage. Everyone is entitled to receive a free copy of his or her credit report annually from each of the three credit reporting agencies, but you must go through the Federal Trade Commission’s website at www.annualcreditreport.com, or call 1 (877) 322-8228. Note that you may have to pay for the numerical credit score itself.
- Set up automatic bill pay. Payment history makes up 35 percent of your FICO credit score. The longer you pay your bills on time, the better your score. Avoid missed payments by setting as many of your bills to automatic pay as possible.
- Keep balances low on credit cards and ‘revolving credit.’ Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. You often can increase your scores by limiting your charges to 30 percent or less of a card’s limit.
- Apply for and open new credit accounts only as needed. Keep this in mind the next time a retailer offers you 10 percent off if you open an account. However, if you need a new line of credit, don’t jump at the first appealing offer; compare rates and fees offered through mail solicitation, on the Internet or at your local bank.
- Talk to credit counselors if you’re in trouble. Using legitimate, nonprofit credit counseling can help you manage your debt and won’t hurt your credit score. For more information on debt management, contact the National Foundation for Consumer Credit (www.nfcc.org).
When you are ready to buy a home and get a mortgage, talk to Crest Savings Bank first before you borrow elsewhere. Contact Residential Loan Officer Darlene R. Stiefel directly at (609) 522-5460 or darlene.stiefel@crestsavings.com. For more information, call (609) 522-5011 or visit www.crestsavings.bank.
