tprice you were told WRONG that can and will negativly impact your credit score.
http://www.americanchronicle.com/articles/view/15599
What makes up a credit score? A credit score is made up of five components. Payment history (35%), balances carried (30%), credit history (15%), mix of accounts (10%), and inquiries (10%).
Balances carried is rated based on the balance to limit ratio. Being that this component makes up 30% of the credit score, it is best to keep the balance to limit ratio low. Let’s take a look at an example.
Let’s say a borrower has two credit card accounts, one Visa with Citibank and one Visa with Bank of America, and both accounts have credit limits of $10,000 but, one is maxed out and the other has a zero balance.
If the credit accounts are left as is, it will result in a lower credit score because balance to credit limit ratio is 100%.
On the other hand, if the borrower spread the balance between the two accounts and owed $5,000 on each, the balance to credit limit ratio would only be 50% resulting in a positive affect to the credit score and would create a higher credit score.
Credit history simply means the longer the account has been open the higher the credit score. However, to achieve the higher credit score the accounts need to be paid as agreed.
Additionally, many people have been advised to close accounts that they never use. Not the case! This can actually have a negative impact on the credit score. Never close old credit accounts, especially if the accounts have a long history.
Mix of accounts. The ideal credit score is made up of both installment and revolving accounts and looks like this:
Mortgage Loan
Auto Loan
3-5 Credit Cards (Or More)
Here are five simple steps to raise your credit score 100 points in forty-five days. 1) Pay past due accounts, 2) get rid of late payments, 3) have credit limits increased, 4) become an authorized user, and 5) do not close old accounts. Let’s take a look at each.
Increasing your credit limits can increase your credit score. Every six months or so call each creditor and request that each increase your credit limit. Be sure to request that the increase be made based on your great credit history. If the creditor insists that a credit report must be pulled, think twice before you agree as this will count as an inquiry and will have a negative impact on your credit report.
Slide 15 – Do not close accounts even if you have heard that old accounts that you no longer use should be closed. Keep accounts open and use accounts that have become inactive periodically. However, if you charge on the account be sure and pay the balance in full as soon as the bill arrives. Purchasing a tank of gas and paying it off will activate inactive accounts and report them current and in good standing. Closing accounts can actually lower your credit score, especially if the account has a long credit history.
Keep the balance to limit ratio low; do not max out credit cards. If you have to use credit cards, be sure to spread it over several accounts.
For a quick boost to your credit score, when a creditor removes a late and provides a letter, request a credit rescore. For a fee, in just a few days, your credit score will increase and this could help you obtain a better interest rate.
Never payoff a judgment or collection when applying for a mortgage loan. Try to negotiate that the account will be paid in escrow.
I have personally helped many people rais their credit scores well over 100 points within a 90 day or less period by doing the above as well as a few other things that are listed in that article. It works and is no real magic it is just how the credit reporting agencies work.
Secondly don't go to a bank for a Mortgage unless you have perfect credit and I'm talking 750 with good cash reserves. Go find a good local Mortgage broker to work for you. They get paid on a per loan basis and will work hard to get your loan thru at the lowest possible rate. Mortgage brokers deal with several Lenders and at different times these lenders have specials to boost their money output. In addition the mortgage broker will only have to pull your credit one time and will send that to multiple lenders to get you pre-qualified with a particular lender.
Bob I sent you a PM back with my cell phone number give me a call later today after you have had a chance to read the above link.
David
Can I get a mortgage? 
THT sponsor
