The third Thursday in October is National Get Smart About Credit Day in the United States. Taking the right steps with your credit a few months before you look for a home could significantly raise your credit score. Our expert real estate agents here in Mobile and Baldwin County know that questions about financing are a big part of any first-time homebuyer's concerns. Even if you've done it all before, it never hurts to take action and get your credit into the best shape it can be. A few points can save you thousands over a mortgage's lifetime.

Mobile and Baldwin County homes for sale are among the most desirable in Alabama, so a prepared buyer is more likely to achieve the results they want. An expert real estate agent is always there to help, but when it comes to improving your credit score, it's "the sooner, the better." This process can take some time.

Luckily, it's easier than it might look to raise your credit. Here's what you should know about mastering your credit score:

• Paying on Time Is the Biggest Part of Your Credit
  Although several factors come into play when calculating credit, your history of paying debts on time is almost always the decisive factor. Your credit is damaged when a debt is 30 days late or more, then again when it reaches 60 and 90; at that stage, it usually goes into collections. If you have a bill you can't pay on time this month, call to ask about a payment deferral.
  
  
• Don't Close Revolving Credit Lines After Paying Them
  Revolving credit lines are credit cards you can pay off and re-use multiple times. They're the opposite of installment credit lines, such as auto loans, which you pay off once and for all. The age of your accounts is a factor in your credit score, so leave any fully paid-off revolving credit lines open.
  
  
• Avoid Taking Out New Credit Lines Before Buying a Home
  One of the biggest mistakes you can make as a prospective homebuyer is to take out new credit within six months before entering the market. No matter whether it's an installment-based auto line, a short-term loan for vacation, or even a new credit card, wait until afterward.
  
  
• For the Most Part, Don't Worry About Student Loans
  Student debt is skyrocketing in the United States, with many graduates carrying tens of thousands in debts that hamstring their financial lives for years to come. However, as long as you're paying on time, many lenders are willing to take a lenient stance over student loans. If you accepted federal student aid, be sure to investigate repayment programs that will reduce your monthly payment burden.
  
  
• You Have the Right to Dispute Everything on Your Credit Report
  By going to AnnualCreditReport.com, you can download a free credit report from each of the three major credit bureaus once yearly. You have the right to dispute any adverse credit items that you don't recognize or disagree with. If creditors fail to respond within a certain timeframe, items can be removed.
  
  
• Don't Take Medical Debt at Face Value
  Medical debt is a factor that has tripped up many potential homebuyers. You can often get bills reduced by asking for an itemized list of medical charges. Likewise, requesting in writing the credentials of anyone who made the decision to refuse insurance coverage for treatment may lead the decision to be overturned.

Contact us to find out more or get started with Mobile and Baldwin County real estate.