Good Credit -- Essential for the Prospective Home Buyer

Credit is a funny thing. It can be a useful tool in the hands of an informed individual, or a weight of burden to the unsuspecting. One thing is for certain, you must have a decent credit score to attain a quality mortgage loan.

We speak to hundreds of individuals each month that are in the market to buy property. Unfortunately, many of them have less than desirable credit scores, and because of this, are not able to get prequalified for a loan.

There are numerous reasons for bad credit scores: bankruptcies, late payments, large credit balances, and a host of others. There are many legitimate reasons a person may have bad credit, but frankly, most of the people we talk to have simply made poor financial decisions.

In most cases, bad credit can be easily avoided:

1. On revolving credit card balances, make sure you pay your minimum balance each month. You will even receive a slight credit boost if you pay over your minimum amount, so do it if you can.

2. Avoid "maxing" out credit card accounts. Credit cards are good to have to build your credit, but make sure you keep your spending under control. Preferably, you should be able to pay off any CC balances completely in the same month you spent the money.

3. If you need to make any big purchases, avoid the temptation to place the entire purchase on your credit card. Instead, put money aside each month until you have enough for the purchase. Remember, just because you have a big spending limit on your cards, doesn't make it your money! You have to pay every penny back plus interest!

4. Try to think of a credit card as a tool for building credit as opposed to a tool for buying the things you want. You spend a small amount each month, and pay it off immediately. This will spike your credit score, and keep you out of CC debt.

5. Make sure to pull your credit rating at least twice a year. This will give you a good feel for what your score is, and most credit score reporting services will give you a detailed explanation for why your score is where it is. If you find any errors, make sure you report and resolve them immediately. It can be long and gruesome work to get a negative mark removed from your credit record, but it can be well worth it when it comes time to buy a house.

I hope some of these tips will be helpful for you as you try to be a good steward of your finances.

You may also want to check out these free resources:

www.FamilyCredit.org
www.DebtFreeChristian.org

Justin Smith is the President of the Christian Real Estate Network - http://www.HisMove.com

---

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

Credit Card Companies Are Out for Your Money

You're probably thinking "Tell me something I don't know" but... Read More

Credit and Its Cost

What is Credit? Credit is money granted by a lender... Read More

Some Truth About Credit

Credit is currently and has been historically an integral component... Read More

Cash Advance ? How Does It Work?

If you want a cash advance or a payday/paycheck loan,... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product... Read More

Why Does FACTA Matter to Me?

FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More

First Major Regulatory and Legislative Victory of 2005 for Creditors and Consumers

Under the Fair Debt Collection Practices Act, collectors are not... Read More

Credit Counseling: Could it Work for Me?

In the face of financial hardship, many seeking a responsible... Read More

Recognizing the Signs that You Might Need Credit Counseling

Most families in America today have a credit card; some... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the... Read More

Understanding the Function of Credit

What is Credit?Credit is the backbone and the engine behind... Read More

Special Credit Information for Married Couples

If you are married, establish separate credit accounts.Try to finance... Read More

Your Guide On Choosing a Credit Card To Suit You

Reach into your wallet or purse, pull out a card,... Read More

Your Credit Score

Credit scores: all lenders use credit scores to determine interest... Read More

Triple AAA in 30 Days

Have you ever wonder about how to get good credit... Read More

Tips for Choosing a Credit Card Company

Credit Cards are essential for any consumer today. However, when... Read More

Credit Cards Can Help You Get Out Of Debt

Your credit rating / credit score is based upon how... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit... Read More

Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how... Read More

Credit Cards For People With Bad Credit Scores

Sometimes life lands you in a situation that causes your... Read More

How Credit Scoring Works

The all important credit score! It determines the amount of... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise... Read More

7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need

Prepaid debit cards are great financial tools and may be... Read More

14 Common Credit Mistakes

Establishing credit and wisely managing your credit becomes easier when... Read More

What is Credit Card and Debit Card Blocking?

Have you ever been told you were over your credit... Read More

5 Things Your Credit Card Company Keeps Quiet About

Credit Cards can bankrupt you if you let them run... Read More

Two Things You Need To Know About Prepaid Debit Cards

According to the September 2004 issue of the Nilson Report,... Read More

How To Use Your Credit Card For Ultimate Financial Advantage

Using a credit card wisely is an important step in... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle!... Read More

What Are the Most Common Ways to Commit Identity Theft or Fraud?

It's the number one source of consumer complaints at the... Read More