Mortgage - Credit Tips

Good Credit
If you have what credit companies consider good credit, you have had credit cards or loans and are responsible in paying your bills. You may have slipped up once or twice. But, for the most part, you are diligent in paying bills on time.

Less than Perfect
You might be in this category if you have had more than one or two delinquent bills. You may have had a bankruptcy or lien against you. If credit collection agencies have come after you for money due, that also hurts your credit score and could push you down to less than perfect credit.

No Credit
Have you even been turned down for a loan because you have "no credit?" This means you pay everything with cash or money orders and never purchase anything on credit. You might be worthy of credit; there is just no official track record to show that you are a reliable bill payer. By purchasing something on credit and paying balances due on time, you can quickly establish good credit.
If you are stuck in the "No Credit" category, the easiest way to start building credit is to open a checking account. Then consider getting a department store or gas station credit card. If you have a steady income and are over 18 years old, you should have no problem getting these cards without a cosigner. Once you get your credit card and start making purchases with it, just be sure to pay at least the minimum balance every month in order to start building your credit.