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This article brought to you courtesy of Robert Groves, Senior Mortgage Broker at Minuteman Mortgage, News-Times Insider Mortgage Expert.

Robert Groves

Consumers, when applying for a mortgage loan, can have a lower interest rate and easier loan approval by improving their credit scores. It does take a little time and some money, but here are some tips to improve those FICO credit scores.

First, clean up the credit history by disputing negative entries, and pay off anything owing. Keep paying bills on time, the longer the clean credit history, the better the credit scores. If you pay off a credit card that you've had for a long time, do not close it. That will erase a long payment history and lower credit scores.

Second, reduce the credit utilization ratio. Pay down the credit cards with the highest interest rate first. If they are small balances, pay them off. Larger balances pay them down below 40% of their credit limit and that will reduce the credit utilization ratio and bring up the credit scores.

Third, if you have no credit or credit scores, a solution is to apply for secured credit cards from a bank. You put some money in an account and the bank issues a credit card securing the limit with the balance in that bank account. Put a small charge, like gas or groceries, on the card and make on time payments. After a few monthly payments have posted and reported to the credit bureaus, FICO scores will appear on the credit report which will help when applying for the loan.

Robert Groves, Senior Mortgage Broker

Minuteman Mortgage

5635 N.E. Elam Young Parkway, Suite 308

Hillsboro, OR 97124

602-460-2374

www.MinutemanMortgage.com

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