An excellent credit score will get you the best interest rates, so you want to ensure lenders will see your score at its very best. You already know that it's a bad idea to apply for new credit in the months leading up to applying for a loan, but CNN Money has another tip regarding the credit cards you already own.
To play it safe, they recommend keeping your cards under wraps during the month before you know you'll be applying for a loan and explain that, "Even if you pay off your balances at the end of the month, there's a chance a lender might pull your score the day before those payments are recorded, making it look as though you're tapping your credit."
Simply put: keep your paws off your cards before applying for a loan for a better chance at getting the best interest rates. Simple and effective, it's a must-do in my book.
Kova And T
Mishumo
Dress for Less
Good to know!
1that's what i've always been told - NO NEW PURCHASES at all for the month prior cause that will affect your interest rate when finalizing your mortgage.
2Yeah, I've heard that too. Luckily, we're not applying for any new loans in the near future. Whenever we do, we'll be sure to keep this in mind.
3I could have used this tip last year....
4Hmmm... that could get a bit tricky since things like cable, cell phone, and utilities are automatically billed to my card each month. However, I don't think I'd add anything onto them - the overall percentage of credit used would be very low.
5It's so ridiculous how much of a game all of this is....does no one else see the problem with this? I think it's sad we have to play such games to seek to better our lives.
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