Trying to buy a new home and need a little help obtaining a Charlotte mortgage? This page is intended to help you improve your less than perfect credit. There are many very basic financial tips that can help you improve your credit. I do not know why this is not taught but much I have learned over the years.
1) Credit Cards: When a credit company checks you credit score, one of the  items considered is the ratio of revolving credit on each credit card (credit limit) compared to you balance. The credit scores prefer to see a two year credit history. They also like to see that you use your credit, can manage your money and make payments on time.
2) Credit Card balances: Credit Bureaus like to see that you use the card and make regular payments. It actually helps your credit if you do not pay off your entire bill every month. Always keep you balance below 50% of the limit. It is actually best is you maintain a balance below 30% of your limit on each card. If 30% of your credit limit is exceeded, call to increase your limit. This rule applies to every credit card individually. It does not matter if you have $1,000,000 of open credit limit. If you have one card above 50%, it hurts your score.
3) Capital One Credit Cards: Cancel this card immediately! Every month your credit cards reports your open lines of credit (active accounts). Each card reports you credit limit and the balance! As a standard practice, Capital One does not report your balance. As the various Credit Bureaus check your credit, they can not tell where you are with respects to your limit. The Bureaus assume the worst and will reduce your credit score. I have had various Mortgage Brokers share that by canceling these cards alone, your credit score will jump between 15 and 25 points.
4) Late payments: Do not ever have a payment over 30 days late! I realize real life happens but this is a huge strike against your credit. Do what ever you can to work out something to protect your credit.
I hope this basic information helps in obtaining your new Charlotte house. I will also build upon this information and share scenarios as they arise.
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