Top 10 Credit Don’ts During The Loan Process

So many buyers are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home or condominium.  However, the recent economic issues have created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.

A leading credit expert, Linda Ferrari, developed the top 10 credit don’ts during the loan process, to help you understand the loan transaction and those things that can unknowingly wreak havoc on your credit report.

1.    Don’t do anything that will cause a red flag to be raised by the scoring system

2.    Don’t apply for new credit of any kind

3.    Don’t pay off collections or charge offs

4.    Don’t max out or over charge on your credit card accounts

5.    Don’t consolidate your debt onto 1 or 2 credit cards

6.    Don’t close credit card accounts

7.    Don’t pay late

8.    Don’t allow any accounts to run past due-even one day!

9.    Don’t dispute anything on your credit report

10.Don’t lose contact with your mortgage and real estate professionals

A prepared educated borrower is a successful borrower!

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