Prepare for the future

Pay you bills on time
Creditors always look for indications that the prospective borrower is a good credit risk: a person who will pay back his or her debts in a timely fashion. But that doesn't mean your credit history must be perfect for you to qualify--few people's are, after all. "Good" credit can include a few minor "dings" in your report, such as:

• Up to two credit card payments 30 days late.
• One installment payment, such as an auto or student loan payment, 30 days late.
• No payments of any kind should be more than 60 days late and there should be no outstanding public record debts such as judgments or liens.

Keep your debt load reasonable
As a rule of thumb, non-mortgage debt payments should not exceed 10-15% of your take home pay each month.

Avoid unnecessary credit inquiries - they deduct points form your credit score
Whenever you authorize a creditor, employer, or other business to check your credit report, an "inquiry" is added to the report itself--a note that someone has checked your credit. Inquiries generally remain on your credit report for two years.
A lender considering you for a loan will look at the number of inquiries recorded there and when they took place. A large number of inquiries occurring in a short period of time may be interpreted as a sign that you are either:

• Applying for lots of credit because of financial difficulty.
• Overextending yourself by taking on more debt than you can actually repay.

Don't let multiple lenders run a credit check. If you do, you may find that the lender of your choice now perceives you as a less solid credit risk and wants to charge a higher rate. We maintain a strong reputation for providing competitive rates and fees, we'll help provide you the best loan available for your needs and goals.

Eliminate excess and/or unused credit
Just as a high number of inquiries suggests you may be overextending yourself, a lot of available credit means you have the capability to overextend yourself in the future, even if you have not done so in the past. Although people may perceive having several credit cards with high limits a sign that they have good credit, lenders may perceive them as a poor credit risk.