I have dealt with many different situations and attended many seminars related to credit scores and what causes them to go up and down. As you probably know, staying on top of your credit is vital in order to get the best possible loan program. One single derogatory item can result in a drastic change in your interest rate. When you apply for a loan with me, I will pull your credit and we can review the report together. If we find any items that are reported incorrectly, I have the ability to correct those items within 3 to 5 business days. This service is called a "Rapid Re-score" and all I need to make it work is a signed letter from the creditor who made the mistake on your credit report acknowledging that it was reported in error. I can submit this to the companies that issue your credit scores and have it erased from your credit history and have new credit scores issued.

Here are some general strategies you can live with to make sure when you apply for a loan your score is as high as possible...

Regarding inquiries... Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. A series of requests in relation to getting a mortgage loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly minimum payment.

Dont "max out" your credit lines right before you intend to get a mortgage loan. Since the size of the balance on your open accounts is a factor, lower balances are better.

Make sure you have some established credit history. I get many applicants who don't have any credit at all. Most lenders are hesitant to lend large amounts of money unless you can show them that you have been responsible about handling credit in the past.

Address your collections and disputes. I have seen many applicants tell me that they refuse to settle a small collection because it was someone else's fault, so they ignore it and hope it will go away. By the time they apply for a loan, their credit scores have dropped and the collection has accumulated interest. In addition, you may have to pay off the collection anyway and also pay a higher interest rate because of the lower credit scores. Remeber, a lower credit score represents a greater risk to the lender, so they will respond with higher interest rates.

Anything in your name is your responsibility. If you have co-signed on a mortgage, credit card, or auto loan, and it is paid late or turned over to collections, guess what? It has the same impact on your credit scores as any other derogatory item that is in your name only. Don't co-sign on anything unless you are willing to take full responsibility for timely payments.