How To Avoid A Bad Credit Rating

By: Thomas Cook

How To Avoid A Bad Credit Rating

It may not be great now, but with a little effort—and admittedly, a lot of time—you can give your credit score a big boost.
 
Once a collection item hits your credit score, the damage is done. With your FICO score, the only thing that can heal your score is time.
 
So how do you improve your credit score? Everybody’s situation is different but here are few guidelines you need to take to heart.
 


Set Realistic Goals
 
Putting down a larger down payment will lower your monthly mortgage payment, but don’t put down more than you can afford.
 
You'll need to plan for more than just that down payment, too. 
 
Keep in mind that you will need money for closing costs, land transfer tax, etc. before you can purchase your home – I’ll cover closing costs in another post.