Clear the Way To Your Down Payment

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Opening a credit card statement and seeing $0.00 as the balance is very satisfying.

So satisfying that many consumers pay off smaller balances completely just to get them out of the way, while rolling over larger balances…ultimately paying more.

Our mission at ForSaleByOwner.com is to help you buy the house you want. Our Credit Cleanup Countdown can help you wrestle your credit score and report into shape for a fast and clean mortgage preapproval. (With that preapproval in hand, you can negotiate confidently for your house.)

Here’s one way to gettyour credit ready for a lending officer’s scrutiny:

Find out what cards have the highest interest rates. Then, find out what your credit limits are for all your cards.

1. First pay off the accounts that have the highest balances in relation to the maximum credit ceiling. You want your credit report to show that you are not using anywhere near the amount of credit you could, on any account.  
2. Second, chip down on the balances with the highest rates. Those are the most expensive accounts.  
3. Finally, pay off the balances on the accounts with the lowest rates. Those are cheaper to carry for a few billing cycles.

These steps will help you make progress towards a stellar credit report and rating when you apply for a mortgage. Rely on ForSaleByOwner.com for everything you need to know about shaping up your credit for a home purchase, from FICO to  first down!

Image courtesy of Morguefile contributor cohdra.