With spring here, people start thinking about cleaning around the home. If you are thinking about moving or refinancing this summer, spring is the perfect time to clean up your credit.

Here are 3 ways spring clean your credit score.

1. Get the balances down. A consumer’s credit score will improve when each credit card balance is paid down to the next X9%.  If a consumer has a balance of 500 dollars on a credit card that has a limit of 1000, that is a 50% utilization ratio.  If that consumer would have paid just $10 more on that credit card they would have benefited from being at the next tear down with a utilization ratio of 49%. Consumers should all ways pay off credit card balances monthly but if possible they should pay credit card balances down to the next X9% with 5-9% being the best for credit score optimization.
2. Pay before the reporting date. The reporting date is the date the credit company sends the payment history data to the three major repositories. If a consumer wants to score as high as possible then paying their bills on the reporting date becomes critical. The utilization ratio only matters on the day the information is reported to the repository.
3. Reactivate and keep active all credit cards. The length of a consumer’s credit history is their most valuable credit asset. Keep all credit lines open with at least one charge per month.  An extra bonus is if you can reactive a card without the lender pulling a new credit inquiry. the consumer benefits from all the good history as long as they keep it active in the following months.

Spring cleaning your credit to get ready for the summer buying season is the smart way to get the most out of any home buying experience.

If you have any questions please contact your local Mortgage 1 Office.  If you are ready to start the mortgage process right now and get a conditional approval in a SNAP!