Due to recent changes in the national credit laws,

you can be penalized by up to 25 points for EACH account

that falls delinquent for EACH 30 day period you are late.

A bill paid 60 days late can cause your credit score to drop 50 points.

This is what is known as the 90 day circle.

This simply means that any account you have that goes past due within the last 90 days is penalized much higher than a bill you were 30 days late 3 years ago.

For those borrowers with a low credit score that barely meets the minimum score this 25 point or any drop in your score can cost you your loan. I can not stress enough that you must keep your bills current because even if you meet the minimum today, a final credit report will be run at the closing of your loan.

When you first apply for your loan your lender will run your credit report.

Look over it with him for accuracy.

There are a number of reasons your credit score may be lower than you expected.

You may have items on it that were paid on time showing late.

You may have loans that were paid off years ago still showing open.

You could have old judgments still showing unpaid or even credit cards you never had that belong to someone else with the same or similar name.

These are just some examples of what can bring down your credit score.

Simply telling your loan officer “oh, that was paid 3 months ago”

will not improve your score.