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Applying for a loan can be stressful.  One of the biggest things our clients worry about is credit worthiness.


Below is a list of things to avoid when going through the loan process to ensure that you maintain your credit scores.


Doing anything to Cause a Red Flag.

This includes taking on new debts during the loan process, co-signing on a different loan, or changing your name or address with the bureaus.

Closing Credit Card Accounts.

This could negatively affect your debt to income ratio, credit history, and other factors that go into your score.

Paying Off Collections or “Charge Offs”.

If you have any accounts that must be paid off, do it through escrow and make sure that the debt is yours. Request a “letter of deletion” from the creditor.

Maxing Out or Over Charging Credit Card Accounts.

Try to keep your balances around 25%-40% of their limit.  This shows that you are maintaining consistent payments while holding on to a healthy balance.

Consolidating Your Debt.

When you consolidate debt into other accounts, it may appear that you are maxed out on those accounts and this could hurt your score.