Top Three Credit Don'ts

Hi everyone; welcome back to my video blog.

Today, I want to talk to you about the top three credit donts; things you should never do during the mortgage process because they can damage your credit and possibly prevent you from getting your home.

1.    Don’t apply for any new credit. Avoid the “you have been pre-approved” scams. Don’t apply for any new credit cards. Guard your social security number with your life.

2.    Don’t pay off collections or charge-offs. Looking at collections on your credit report can be embarrassing. A lot of people’s first reaction is to go and pay off any bad reports. Paying off a collection that is more than six months old can damage your credit by 20 to 50 points. This could completely knock you out of the box for any type of home mortgage financing.

3.    Do not close credit cards accounts. This may surprise you. When you close out your credit card accounts, you immediately lose the credit history or the depth involved with creating your credit score.

Help your loan officer and yourself by not doing anything crazy to your credit score. If you want my top 10 dos and donts of credit, please contact me on Facebook: Diamond Residential Mortgage.