The key to a good mortgage loan and a good interest rate is good credit! Whether you are looking at a new home purchase, a cash-out refinance of an existing mortgage, a home equity loan, or home equity line of credit, your ability to qualify for a good mortgage loan versus a bad credit mortgage loan is FICO score dependent.
While paying your bills on time, keeping your available credit low in relation to your available balance, and developing a long credit history helps to ensure higher credit scores, protecting yourself against identity theft is one of the best ways to keep your credit scores high and to avoid a bad credit home loan.
Take These Steps to Protect Your Identity and Avoid Bad Credit
* Check your credit report at least once a year. If you don't have a good lender who you work with, go to an online service such as www.annualcreditreport.com and obtain a free credit report. Your credit report will show all of your credit activity and is a good place to see if someone else is enjoying your identity.
* Secure personal information. This means shredding mail, statements, and receipts that contain personal information and account numbers. Keep bank, and other financial documents, in a secure place.
* Do not give out personal information over the phone, and be very cautious when responding to promotions.
* Do not carry your social security card with you and minimize the number of credit cards you carry.
* Have a mailbox that you can lock. If you are planning a vacation, have your mail held at the post office or picked up by a friend.
Identity theft is a billion dollar a year industry. Don’t become a victim. Protect your identity while defending yourself from bad credit and a bad credit home loan.