Strengthen your credit file by refinancing your mortgage

Your ability to obtain a mortgage, auto loan or credit card depends on your past credit behavior and how lenders score your credit rating. Creditors, who then report their findings to the credit bureaus, are tracking your spending habits. That credit history is what you see when you get a copy of your credit report.

If your credit score is low and your debts are out of control, the worst thing you can do is to ignore them. The sooner you deal with your credit problems, the more lenient lenders will be and the less painful your exit from debt will be.

Develop a strategy

Some bad financial habits are relatively easy to stop such as: bouncing checks because you don't balance your account, underpaying or making late credit card payments. But, bad credit habits have major repercussions -- causing divorces, bankruptcies, lost dreams and emotional wreckage.

Here are a few simple strategies to strengthening your credit file.

• Consider refinancing your mortgage to include your current credit card debt. This will wipe your slate clean - the interest will more than likely be lower than your credit card interest and be tax deductible as well.

• Pay more than the minimum due on your credit cards - try to double the payment or at least include the finance charge.

• Don't spend the maximum limit on your cards - it lowers your credit score. Creditors don't like you to spend the entire limit they've extended you.

Understand that a bad credit record can haunt you for years. Your credit record reflects all of your spending habits, so it's important to stay on top of these habits in order to keep up a healthy credit file. Consult with one of our senior loan officers for more details on refinancing your existing mortgage to include your credit card debt.