Mountain Views News          Saturday, March 16, 2013

GET THE CREDIT 
YOU DESERVE

Mortgage applications are being reviewed far more thoroughly now than in the past, and your credit 
score should be 680 or higher to qualify for the best interest rates. So how do you determine your 
score, and know you're getting the credit you deserve?

Everyone is allowed one free credit report per year from the three reporting agencies (Experian, 
Equifax and TransUnion). Review the reports for accuracy and act quickly to correct any errors or 
omissions. 

Approximately 35% of your credit score is based on the timeliness of your payments. Make sure that 
no late payments older than seven years are still on your report.

If you have paid off loans or credit cards, a zero balance should appear on those accounts. Sometimes, 
agencies don't properly update those balances after settlement.

15% of your credit score is based on the length of your credit history, so make sure that the opening 
dates of all your accounts are accurate. Also make sure that the limits on your credit cards are 
correct, and keep the balances under 50% of those limits. Total debt accounts for 30% of your credit 
score.

Finally, think twice about closing credit card accounts with zero balances, because this negatively 
reduces your ratio of "available credit" to your debt. First, get the facts. Then, make corrections. 
Finally, apply for home financing with confidence!