Your Lake of the Ozarks Mortgage Lender: 5 Tips for Maintaining a Good Credit Score

One of the most important aspects of applying for a mortgage is having good credit. If you have bad credit, you'll need to work on improving your score in order to get a better interest rate, and in some cases to even obtain a mortgage loan at the Lake of the Ozarks at all. If you have good credit, then it's important to maintain that credit rating. While it can take time and patience to improve your credit score, it's unfortunately easy to mess it up. Keep reading for some tips to help you maintain a good credit score from your Lake of the Ozarks mortgage lender.

1. Setup Payment Reminders.

One of the biggest factors contributing to your credit score is making all your payments on time. If you're one of those people that has too many things on their plate (which is most of us), consider setting up payment reminders so that you don't miss any payments. Depending on the type of bill, you have other options as well. Some companies will let you schedule a payment for the future instead of having to wait until payday to pay it. In addition, you may be able to setup automatic withdrawal or charge. This is a great option as long as you know you'll have enough money in your account to cover the bills.

2. Keep Credit Card Balances Low.

Even if you pay your credit card bill on time each month, having high balances on your credit cards can affect your credit. Keep the balances on credit cards and other "revolving credit" as low as possible. If you can pay off your cards in full each month, that's the best way to go. Then you don't have to worry about high credit card rates increasing your balance. Keep your credit cards under control and maintaining your credit score will be a lot easier.

3. Don't Move Your Debt Around.

The most effective way to improve your credit score is by paying down revolving debt. Rather than moving your debt around, for example consolidating it onto one card or a personal loan, you should work to pay it down. Owing the same amount, but having fewer accounts may actually lower your credit score. Work on paying your smallest balance first and work your way around the rest of the payments. Moving the debt from one place to another isn't going to decrease the amount you owe. Paying off debts will take time, but you're sure to see your credit maintaining and eventually improving.

4. Don't Open & Close Credit Accounts.

The more available debt you have, the more likely you are to put your credit score at risk. Each time you open a new credit account, your credit score gets dinged slightly. Opening a new account also lowers your average credit age, another contributing factor to your credit score. To maintain a good credit score, only open new credit accounts when absolutely necessary. In addition, you don't want to close any unused accounts. After time, that account will drop off your credit report, which can shorten your average credit rating.

5. Watch Your Credit Report.

While you may be doing everything right in regards to your credit, mistakes can be made. Errors on your report could lead to a drop in your credit rating. In addition, identity theft and credit card fraud can also lead to mistakes on your report. Therefore, it's important to check your credit report regularly and look for any issues. The sooner you can correct them, the easier it is to maintain a good credit score.

If you have your credit in order and are ready to apply for a home loan at the Lake of the Ozarks, I'm here to help. As your local mortgage professional, I'll work with you every step of the way. I'll discuss your Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve. Give me a call at 573-746-7211 today!

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