Refinance Home Loan Rates – Improve Your Credit Score for Low Rates
Posted on | September 10, 2009 | 1 Comment
Refinance home loan rates have been around 5% for two weeks now and nothing seems to have changed. The problem that most Americans are finding is that their credit score is not good enough to get these low rates. A credit score of 720 in 2005 is comparable to a credit score of 680 today. To be a truly prime borrower you need to have an elite credit score and very little blemishes on your credit report.
With the credit score being so important to getting a low refinance rate what can you do to improve your score? There are a few things you can do to make your credit score much better. The first thing you need to do is sit down and look at your financial history. By buying a credit report this makes things much easier but you can also do it by just going over your past financial statements.
Your credit score increases as the duration of your lines of credit increase. If you have had a credit card for several years and you have been thinking about canceling it for a new card you might want to reconsider. The longer you have had the card the better it looks to credit agencies. If the interest rates are comparable it would be smart to keep the card that you have had for quite some time.
Another important factor in your credit score is the amount of your balance based on your limit. If you have three credit cards that are all maxed out you are likely to see your credit card suffer from this. If you have three credit cards that are only about 20% of limit the your credit score will improve. The goal for most credit card users is to be at 10% or below your credit card limit. Obviously this is very hard from some borrowers but with balance transfers available you can make the numbers work for you.
Getting a low refinance home loan rate takes hard work and a good credit score. If your credit score has suffered through the recession it is time to get it back in gear an improve your credit score. Make sure to stay current on your bills and keep your credit card balances as low as possible to help increase your credit score.
Author: Heather Best
Comments
One Response to “Refinance Home Loan Rates – Improve Your Credit Score for Low Rates”
Leave a Reply
September 11th, 2009 @ 1:47 pm
filed bankrupty to keep home family let house got behind notes ate 1069.00 a month plus other expenses