As more and more Americans head down the road to homeownership and mortgage rates remain at steady lows, many consumers are taking advantage of the current rates and purchasing a home or refinancing into a different loan program. Before you check out the neighborhood you plan to settle in, it is important to first learn more about your credit score and how it affects your ability to borrow money for a mortgage.

A credit score is a determined scientific number from 300-850, which indicates the level of risk for repayment of debt to a lender at the time of the credit inquiry. Credit scores are based on your current debt utilization, your payment history including mortgages, credit cards, auto loans and bankruptcy filings, any other public record, how long your credit has been established and a mix of credit types you are using. The number of inquiries about your credit during the last 12 months may or may not be a factor influencing your credit score, depending on all the other factors present in your credit file at the time of the inquiry.

The Missouri Association of Mortgage Brokers (MAMB) recommends that consumers meet with a certified mortgage professional to discuss how to improve their credit score and profile. During the meeting with their mortgage originator, the MAMB recommends that consumers consider the following tips to improve their credit score before purchasing the home of their dreams:

· All credit card balances should be paid to below 30% of the available credit limit on the card.

· Do not consolidate credit card accounts to one or two cards and close out other accounts. Consolidation of your credit card balances will noticeably distort the appearance of your credit utilization. Having a low balance on several credit cards is better than having a high balance on one or two cards where exceeding more than 30% of your available credit limit would indicate you were a higher credit risk profile.

· Keep your credit card accounts open and active by using your cards at least once every 5 months, even if it is for a tank of gas. When you receive the bill for a credit card you do not use that often, make sure to pay the bill in full. Do not close accounts without the advice of a knowledgeable mortgage broker, as doing so may negatively impact the balance of the variables weighed by ST. LOUIS, Mo. -- As more and more Americans head down the road to homeownership and mortgage rates remain at steady lows, many consumers are taking advantage of the current rates and purchasing a home or refinancing into a different loan program. Before you check out the neighborhood you plan to settle in, it is important to first learn more about your credit score and how it affects your ability to borrow money for a mortgage.

A credit score is a determined scientific number from 300-850, which indicates the level of risk for repayment of debt to a lender at the time of the credit inquiry. Credit scores are based on your current debt utilization, your payment history including mortgages, credit cards, auto loans and bankruptcy filings, any other public record, how long your credit has been established and a mix of credit types you are using. The number of inquiries about your credit during the last 12 months may or may not be a factor influencing your credit score, depending on all the other factors present in your credit file at the time of the inquiry.

The Missouri Association of Mortgage Brokers (MAMB) recommends that consumers meet with a certified mortgage professional to discuss how to improve their credit score and profile. During the meeting with their mortgage originator, the MAMB recommends that consumers consider the following tips to improve their credit score before purchasing the home of their dreams:

All credit card balances should be paid to below 30% of the available credit limit on the card.

Do not consolidate credit card accounts to one or two cards and close out other accounts. Consolidation of your credit card balances will noticeably distort the appearance of your credit utilization. Having a low balance on several credit cards is better than having a high balance on one or two cards where exceeding more than 30% of your available credit limit would indicate you were a higher credit risk profile.

Keep your credit card accounts open and active by using your cards at least once every 5 months, even if it is for a tank of gas. When you receive the bill for a credit card you do not use that often, make sure to pay the bill in full. Do not close accounts

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