Do you plan to get a mortgage or a car loan anytime soon? Your credit score will determine the interest rate you pay for years to come. A recognized credit repair expert offers some powerful tips on bringing up your credit scores when it counts.

One little number determines the interest rate you pay on every loan you take. And your interest rate determines your payment, thereby impacting your budget and the quality of your life. This is important. Every point of your credit score matters. So pay attention. Credit repair can pay dividends that last for years to come.

Too many people ignore their credit. This is a big mistake. Small precautionary measures can make major differences in your credit scores, just as silly oversights can plunge your scores into negative territory just when you need them the most. It does not matter if your credit is good or bad. Little changes in your behavior prior to applying for a loan can make life-changing differences in your life for many years to come. It makes perfect sense. A once of credit repair prevention is worth a pound of cure.

Knowledge is power. And in the case of credit repair, knowledge is money. Before you apply for a loan take the time to see what a lender will see. The credit reporting system is seriously deficient. Quality control is sacrificed to cost saving at the credit bureaus daily. Congress recognized this unfortunate fact and mandated free access to your three credit reports once every twelve months so that you could catch and correct inevitable errors. Get it? You must be vigilant.

Lenders base their lending decisions on credit scores. But not just any scores. The credit bureaus sell a special credit score to lenders called the FICO score. The credit bureaus however, do not sell these important scores to consumers. If you purchase credit scores from the credit bureaus you will be buying their own proprietary scores that have no resemblance to FICO scores. Ouch! But have no fear. Go to the website of Fair Isaac Corporation, the inventor of the FICO score model where you can purchase all three FICO scores for fifty dollars total. Not cheap, but it is an investment in your own life.

If you are getting a loan in the near future now is the time to limit your credit activity. New accounts will hurt your scores, at least temporarily, and inquiries won't help either. Try to remain alert. Many people make the error of buying new furniture before closing on their new mortgage, and financing the whole package. This could cost you fifty points on your score. And watch out for store card point-of-purchase offers. When a clerk asks if you want to save money by opening a new account, just say no. It's great to save money, but if you need your credit scores it's best to lay low for the moment.

Credit cards have a major impact on your credit scores. All of your accounts matter, but those little pieces of plastic in your wallet can swing your credit score dramatically in either direction, so take heed. If you make the mistake of applying for a loan at the unfortunate moment that a credit card is maxed out your scores may suffer a penalty of over one hundred points. That's right! So now is the time to get those balances down. The optimal balance for credit repair purposes is under 20% of the limit.

If you have made mortgage application and been told that your scores are too low, there is still hope. Mortgage brokers have access to an amazing credit repair tool called Rapid Rescore. You cannot do this yourself. This process was developed exclusively for mortgage originators to allow potential homebuyers a chance to prop up their scores at the critical moment. To the best of my knowledge no other industry offers this awesome opportunity. Here's how it works.

If, after making mortgage application, you realize that you should have paid down your credit card balances, there is still time. Just contact your credit card company and tell them that you want to pay down your balance in the quickest possible way. They will instruct you accordingly. Once the payment has been processed, contact the credit card company and ask for a balance confirmation letter. Give this balance letter to your mortgage broker to do a Rapid Rescore. Within about three days your scores will be recalculated based on the new lower balances. Credit repair magic!

If in doubt, call a credit repair expert. There are a wide variety of ways to bolster your credit scores. Hiring a credit repair professional will insure that every possible option is considered and pursued in a proper and effective manner. When every point counts make sure you take the right steps and you will come out ahead!

Copyright © 2008 James W. Kemish. All Content. All Rights Reserved.