News for Better Credit Scores and Mortgage Rates

Credit scores obviously have a big impact on mortgage rates and terms.

What may be news to some people is that credit card balances can determine up to 30% of your credit score. In order to maintain good credit scores, your outstanding balances on credit cards should be less than 50% of your available credit, and preferably less than 30%.

Also, it's a good idea to check your credit before getting a mortgage, and if you find any errors, you are entitled to dispute the accuracy. The Federal Fair Credit Reporting Act gives you the right to challenge inaccurate information by contacting the reporting agencies. Under the FCRA, they are responsible for correcting any errors on your credit report free of charge.

Your dispute must be investigated by the credit reporting agencies within 30 days of reporting an error. They will contact the source of the derogatory information to confirm your record. If you have any, provide documentation to support your claim to expedite the process. It could help to get better mortgage rates.

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