Credit History is a major factor in considering credit worthiness. Lenders are going to move more in the direction of risk based pricing, which means that borrowers with better credit scores, get better mortgage rates. Teach your Children how to use credit because it will determine their opportunities for owning a home.
TIPS TO IMPROVE YOUR CREDIT RATING
1. Always pay your bills on time. (The payment of utility bills such as phone, cable and electricity are not recorded in your credit report, however many cell phone companies report late payments.)
2. Pay Debts as quickly as possible.
3. Try to pay your full balance off on all cards every month whenever possible.
4. Don’t go over the credit limit on your credit cards. Stay below 75% of the limit
5. Don’t make too many credit applications (use a Mortgage broker). Your score doesn’t change if you personally make credit inquiries.
6. Contact creditors if you’re having trouble making payments and work out solutions.
7. Read the statements you receive from your credit card company carefully. Keep yourself up-to-date with any changes or fee increases.
8. Keep your credit usage to no more than two credit cards and one Line Of Credit. Avoid store credit cards.
9. Get a copy of your credit report from all three credit-reporting agencies at least once a year and make sure they’re in order.