Credit Do's and Don'ts During The Loan Process


Do Stay Current On Existing Accounts -  one 30-day notice can cost you.

Do Continue To Use Your Credit As Normal -  changing your pattern will raise a red flag and lower your credit score.

Do Call Your Mortgage & Real Estate Professional Below before making any address or credit changes.


Don't Apply For New Credit -  every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.


Don't Close Credit Card Accounts - If you close a

credit card account, it may appear that your debt ratio has

gone up. Closing a card will affect other factors in the score,

including credit history.


Don't Pay Off Collections Or “Charge-Offs”If

you want to pay off old accounts, do it through escrow.

Request a “letter of deletion” from the creditor.


Don't Max Out Credit Cards Try to keep your credit

card balances 30% below their limit during the loan process. If

you pay down balances, do it across the board.


Don't Consolidate Your Debt When you consolidate all of your debt onto one or two credit cards, it will appear that you are“maxed out” on that card and you will be penalized.


Merrimack Mortgage Company, Inc. NMLS ID #2561 Information is accurate as of date of publishing. Information is subject to change without notice. Always check with a Financial Advisor for tax information.

This is not an offer for extension of credit or a commitment to lend. Licensed by the New Hampshire Banking Department, MA Lender License #MC2561, R.I. Licensed Lender, Maine, CT. FL & VT Licensed

Lender. Licensed by the Pennsylvania Department of Banking, Licensed by the New Jersey Department of Banking & Insurance

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