How can you improve your credit score? And in a relatively short time period too!

It is much harder to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies. Federal Law changed a few years ago making your credit reports from Experian, Trans Union and Equifax Free every 12 months!  Pinnacle recommends that you pull one from each, every 3 or 4 months.  This will spread out your credit profiles over the course of the year and keep you more current.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card offers in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.

Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. The Credit Bureau Exec's tell us that by carefully managing your credit, it is possible to add as much as 50 points (and in some cases more) per year to your score. 

Talk to a Pinnacle Mortgage Group of Anaheim Hills, Loan Advisor Today. They'll guide you on the stepto take and offer recommendations about where to start and how not to get ripped off by slick over-charging credit clearing companies who prey on consumers with lower fico scores.  Many of the techniques we recommend can be done yourself with some diligence and a little patience.  If an error is being reported, Pinnacle's loan advisors can assist with a "rapid rescore" to speed up your Home or Commercial loan needs!