Check Your Credit!

Your credit score is more important than ever when it comes to buying a home.  The requirements for scores and debt ratios continue to get tighter.  In the past many lenders were less strict and that is one of the reasons why there are now so many home owners in financial distress and even facing foreclosure.

So, what can you do about your credit?

1. Pay your bills
2. Pay your bills on time
3. Don’t take on debt you can’t afford
4. Regularly check your credit for fraud

Let’s talk about that last one: Regularly check your credit for fraud.  As a two time victim of identity theft I feel particularly qualified regarding this one.  It is of vital importance, whether you are buying a house or not, that you check your credit regularly to see if there any new accounts that you did not open.

You can check your credit three times a year for free.  Free?  Yes, no scam, no gimmick, free.  Go to www.annualcreditreport.com and enter in a little information to instantly (usually) access your credit report.  It is very easy, free, and takes less than five minutes.  If you have had a recent address change, or something along those lines, it may require you to mail in a request, this is for your protection, and you should still be sure to obtain your report.

What I Recommend

There are three credit bureaus: Experian, Equifax, and TransUnion.  You can check each of these once a year for free.  I personally check one every four months.  Example: Check Experian in January, Equifax in May, and then TransUnion in September.  This was you are taking control of your credit on a regular basis-and it didn’t cost you a thing!