Good credit is essential in securing a loan these days, excellent credit is even better. In many cases a few points can mean all the difference in helping sink your chances or elevate your opportunities, therefore helping your credit be as good as it can be is of the essence. Below are a few common scenarios that could pop up on your credit report, and how to approach them.

Paying off account balances is a great idea and reduces your available credit/credit balance ratio (an important piece of information that lenders examine), but they need to show as paid on your credit report. If you have recently paid off account balances make sure that they appear as paid and not outstanding or overdue.

Make certain that any unpaid bills that appear on your credit report are actually yours. Surprisingly enough often mistakes occur on credit reports that actually belong to someone else. Additionally, any bills tied to former addresses should be looked for as well.

Look at your credit limits. Are they listed correctly. Higher limits with larger unused percentages will place you in better standing. Similarly lower limits with more higher used percentages can limit the loan size you could be entitled to.

The bottom line is that it is in your best interest to examine your credit report with a fine tooth comb. Small errors can make a difference, and in today’s tight lending market this could be a difference that you can’t afford to have. The small costs involved with making repairs to your credit report are worth it in the long run

Contributed by Mario Romero, CRS, CDPE, CLHMS
602-252-4191 office, 602-254-9810 fax
The Romero Team - Melcher Agency
www.TheRomeroTeam.com
www.ShortSaleTeamAz.com
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