CREDIT RESTORATION TIPS!

Carrying High Balances on 0% Interest Credit Cards The Action: The consumer carries a high debt load on 0% credit cards. Why It’s an Issue: If you’re planning on getting a mortgage in the near future, don’t let the short-term 0% credit card offer fool you into thinking it’s OK to run up debt on that card. Why? You’ll still need to make that payment every single month. It doesn’t matter if your balance is $100,000 at 0% interest, it’s about the payment, and the lower the payment, the better. A lender wants to see that the minimum payments are very low in relationship to the income. Payments are king for the granddaddy of credit, a mortgage loan. A consumer who has made of these common credit mistakes should consider speaking with a reputable mortgage loan officer. The loan officer can proactively walk them through the process of how to fix these credit blemishes, and take a preemptive approach in helping them qualify for home financing. It can also help to check your credit reports (which you can do for free once a year) and your credit scores to see what work you may need to do before you apply. You can obtain two of your credit scores for free on Credit.com, along with an overview of what’s affecting your scores. Knowledge is Power and Credit is King!