1. Check for and correct errors in your credit report.Mistakes happen, and you could be paying for someone else’s poor financial management. Under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. To request your free annual report under that law, you go to www.annualcreditreport.com. The Credit Report you receive, however, will not tell you your actual credit score. This information is proprietary and will cost about $15 to obtain it. For more information about your actual credit score, go to MyFICO.com. 2. Pay down credit card bills.If possible, pay off the entire balance every month. However, transferring credit card debt from one card to another could lower your score. Cancel all credit cards that you don't use. 3. Use Credit Cards Carefully.Don’t charge your credit cards to the maximum limit. 4. Be patient.Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year. 5. Stop and think.Don’t purchase big-ticket items for your new home on credit cards until after the loan is approved and the transaction is closed. If you use your credit cards to buy all kinds of cool stuff for your new home, the amount you spend will add to your debt. Make no mistake - your loan underwriters will run another credit check just before closing. If your credit score is now lower - you may lose the loan you thought you had! 6. Don’t open new credit card accounts.Believe it or not, having too much available credit can lower your score. The contradiction seems ludicrous at first glance, but the reasoning is sound. Simply put, your loan underwriters are afraid you might actually use all that additional credit - running up debts to others to such spectacular proportions that you won't be able to repay their loan. On the other hand - don't consolidate cards if the amounts on each card is significant. Your credit score will be lowered if you come close to 'maxing out' the credit limit of any card. Putting all your revolving debt on one card may come close to reaching that limit. 7. Don't shop for credit.Too many credit applications can lower your score. However, don't let that stop you from shopping for a mortgage when the time comes. Multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time. 8. Avoid 'easy loan' finance companies. Even if you pay the loan on time, the interest can be exorbitant, and it will probably be considered a sign that you are a poor manager of credit. | 
