 TITLE: Does Mortgage Prequalification Affect Your Credit Score? CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nIn the months leading up to your home purchase, you could take the opportunity to work on improving your credit. Your credit reports and scores can impact your ability to get a mortgage and your mortgage's interest rate, and you want to be in the best position possible. Here are a few things you can do to prepare:\n*   **Check your credit.** If you haven't done so already, check your credit scores to know where you stand. Also, review your credit reports from all three credit bureaus for factors that may be dragging down your scores. Past-due accounts and accounts in collections can have a big impact on your score, so do everything you can to avoid missing payments and to get caught up ASAP if you do. If you have any charge-off accounts on your report, take steps to address them.\n*   **Pay down your credit card balances.** Your credit utilization, which measures how your revolving account balances compare to their credit limits, is another important scoring factor. Paying down revolving balances, such as credit card debt, can lower your utilization rate, which can help your credit scores. Even if you pay your credit card bill in full each month, your balance may be reported at the end of your statement period and result in a high utilization rate. Making payments before the end of your billing period can help you keep your credit utilization low.\n*   **Don't apply for new accounts.** Opening a new credit card or loan can hurt your credit scores because it can lower your average age of accounts and lead to a hard inquiry. New accounts can help you build credit if you're making payments on time, and these short-term setbacks generally aren't a major concern. However, it may be best to avoid opening new accounts in the months leading up to your mortgage application.\n*   **Pay every bill on time.** A late payment can hurt your credit scores, particularly when it first happens. While the lead up to buying a house may be hectic, make sure you don't miss any bill payments. If you don't already do so, you might want to set up automatic payments or alerts for bill due dates. END