I bought a house?
Answers:
I agree with Spirish_1. If you have any credit cards or accounts that are just open even if they don't have a balance you need to close them, becuase they look at it as a possible debt that you can aquire. Try to consilidate anything that you can't payoff if they are small. The more revolving debt you have the worst it looks. Also remember that it takes time for things to show up on your credit report, so all these things you are doing are great just wait a while before you refi. Try to start with paying off the smallest debt and work up from there. If you ahve any judgements or collections get those paid off first of all. If you owe taxes or have a liens put on your house other than the mortgage clean those up also.
got any credit cards you can pay off? you need to show some type of financial responsibility and the ability to pay bills on time. can you get a part-time job to help pay off some debt?
Combine credit cards so that it will appear that you paid some off.
Pay all of your bills on time, but not ahead, they don't know if they are paid ahead.
If you have cosigned for someone, see if they are established enough to go on their own now.
Don't change anything
Put a couple months salary in the bank.
Good Luck
Pay down your debt, pay collections, close accounts that are not being used and have no balance. Wait six months to a year before you refi.
The general rule of thumb is that your credit score goes down a bit with a new mortgage but starts to go up after a year. If you have no other debts, than don't worry about it. If you do, like credit cards, etc. you should pay them down and this will raise your score quicker. You might also want to raise the value of the house so that you can get more money when you refi.
It takes a lot longer than three months to raise your credit score. But if you completely pay off your credit cards and installment loans in three months' time, your FICA score may increase by the time the credit report is run (depending on when the CC companies report that info to the credit bureaus).
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