In today’s environment, having a low credit score will cost you – BIG TIME.  Your low score will cost you in double insurance rates, higher credit card rates – and could keep you from obtaining some jobs.  Because it's almost impossible to change your score in 30 or 45 days, you should begin the process BEFORE you decide to buy a home or refinance a mortgage. But there are some things you can do to make sure when you apply for a loan your score is as high as possible.

Be certain that the information from each of the three credit reporting bureaus is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies. For information about Dispute Letters Click Here

Note: If a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. For more information about how long items stay on your report click on the link above…

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment.  Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.

Additional information about fighting inaccurate information on your report can be found at the Fair Credit Reporting Act.