Most people haven’t seen their recent credit report and do not know what it contains. People generally know their overall credit rating as good vs. bad but few know specific details. To ensure your credit reports are accurate you should request a credit report every year from each of the three credit reporting agencies and check the reports carefully for errors.

Recent legislation in the United States requires each of the three credit reporting agencies to provide you with a free copy of your credit report once each year. You can request these reports from the website http://www.annualcreditreport.com If you find errors on your credit report you must dispute them with the individual credit agencies. Equifax, Experian, and Trans Union all have procedures in place for disputing errors on their credit histories.

You can improve your credit score by reducing your debt-to-income ratio. The debt-to-income ratio is simply the ratio of your total debt to your annual income. You can improve this ratio by paying down the balances on your credit cards and closing the accounts. The fewer open accounts you have with credit cards the better your overall credit score will be.

Pay your bills on time. Do not start shopping for a mortgage until you have at least 90 days of on-time payments on your credit history. Mortgage lenders look at your repayment history to determine if you will make your mortgage payments on time. A history of late payments will hurt you.

Finally, keep the number of credit inquires on your file to an absolute minimum. Too many inquires on your credit report can hurt your credit score. When shopping for a mortgage loan always ask for “No Obligation” quotes from lenders to prevent the lender from accessing your credit history until you are ready to apply for the mortgage.

By taking the time to clean up your credit report and dispute any errors at least 90 days prior to applying for a mortgage you will improve your ability to receive the lowest interest rate possible.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages for Dummies, a mortgage help site devoted to saving homeowners money with a free guidebook “Five Things You Need to Know Before Refinancing a Mortgage.” Sign up for your free guide today at: http://www.refiadvisor.com