Mortgage Advice

Your credit score is the first thing that a lender looks at when approving your mortgage. It can mean the difference between qualifying for a mortgage or being flat out declined. It’s common knowledge that your score will drop if you’re late on your payments or if collections are filed against you. However, there are three credit score lowering traps that could be hurting your score without you even realizing.     1. Closing Credit Accounts   Most are not aware that their credit score will drop anytime you close an active credit account. For example, closing one of your credit cards will have a negative impact on your score. This doesn’t mean that you shouldn’t close credit accounts, but you should be aware that it will lower your score. Two examples of this are listed below:   Length of Credit History    When you close an account, you’re eliminating some of your credit history since you’re removing a piece of your credit profile. This is generally not an issue if the rest o