When you plan to buy a house, you should begin to work on your credit scores from at least 3 to 6 months before. The credit scores from Equifax, TransUnion and Experian are important in calculating the mortgage rates.

How to estimate your current credit score

It is difficult to comment on what would actually boost a person’s credit scores since these are uniquely determined in each case. Using our quick credit score estimator would help you to know what your current credit score is likely to be. Your estimated credit scores are analyzed by the free estimator and it even provides specific suggestion for improving your credit score.

How to review each credit report

It is very important that you check your credit reports diligently before the mortgage lender checks them. To check all three reports from Equifax, TransUnion and Experian, place an online order for these and your credit scores. Each report must be thoroughly reviewed for inaccuracies and signs of theft of identity. Anything that is inaccurate or is hurting your credit score should be brought to your notice.

Plan to boost your credit score

Based on the estimated credit score and credit reports, you could follow some suggestions and update your credit score. It would also help to discuss the errors with the credit companies. Following are some tips on what will help and what will not to help boost your credit score will help in boosting your credit scores:

• Finish small loans by paying off as early as possible
• Keep credit card balances low
• Each month, pay your credit card bills and loans on time
• Do not make unnecessary credit inquiries for new credit
• Do not ask a for an increase on current credit limits
• Clean your credit reports of expired negative records (collections, bankruptcy)
• Clean your credit reports of fraudulent records (identity theft records)

What will not help in boosting your credit scores:

• Closure of credit card and loan accounts will lower your credit score
• Delaying payments of credit card bills and loans
• Putting in applications for a number of new credit accounts
• Removal of correct records from credit reports
• Removal of positive expired records from the credit reports
• Completely paying off all collection and bankruptcy accounts.

Making a request for changes

After reviewing the credit reports, one should take action to boost their credit scores as soon as possible. A letter of dispute has to be submitted to the credit bureau for requesting removal of inaccuracies from the credit report. Crimes should be reported to the credit bureau’s identity theft departments to be able to remove a fraudulent entry from your credit reports.

The final step

One needs to wait from 30 to 60 days for updates to be visible in the credit reports. This time can be utilized in using a service like Unlimited Credit Monitoring or Score Watch to keep a watch on your credit reports and credit scores. The loan application process should be started only after the credit reports are updated and the credit scores increased.

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