Tips in Maintaining Your Credit Score During the Holiday Season

Holiday season brings joy and good spirit to give. If you are planning to get home loans to buy home, be aware of the impact of using your credit cards during this season to your credit score. Here are some tips from Golden Pacific Home Loans in San Ramon to keep your credit score healthy:

1. Create a game plan for any major financial decisions in the next 6, 12 and 18 months be it a refinance, purchase or any other home loans and financial decision. The spring may seem far away yet it is just around the corner.
2. Check your credit report for errors – 80% of all consumers credit reports contain errors, most can be corrected in one months-time.
3. Make sure your credit card balances are low! Every credit card you own should be below 20% of its limit at all times! Start by paying your smallest credit cards down first. If you want your balance to reflect as low as possible pay before your bill before the cycle close date not the due date.
4. Don’t open new accounts – New accounts can quickly damage your credit score and decrease your length of credit history. It can be very tempting to open new accounts for the special financing offers or percent off discounts, be aware of the effect on other buying decisions.
5. Try to avoid multiple credit inquiries – every time a lender pulls a credit report it can damage your score between 2 and 5 points! Don’t believe it when you are told that inquiries don’t count.
6. Make all payments on time! A single late payment on any account can decrease a credit score 150 points!

Contact Golden Pacific Home Loans if you have questions about credit scores, mortgage or refinancing your home loans.