Times have certainly changed over the past couple years. For the better, or for the worst? That’s up for debate.

However, one thing’s clear: there are no free rides given in today’s economy, and if you want something you must work for it – period.

And that goes for obtaining a home loan for your next property. Home loans are decidedly more difficult to come by, as lenders have increased their standards and tightened their belts.

It is therefore of the utmost importance that, if you want to make any type of large purchase (i.e. car or home), you must do everything in your power to maintain a strong credit score. A flawless credit score in today’s lending industry is gold, and anything less than that is just not good enough.

Luckily, there are many ways that you can either (a) protect your credit score, or (b) work toward a great credit score:

• Pay all of your bills on time – and I mean all of them! We all know the importance of paying our car loans, our home loans and our credit card bills, but do you also know that paying your student loan payments late, or skipping your utility bill payments, can cost you big in terms of your credit score?
• Pay down as much debt as possible. Decreasing your debt-to-income ratio, particularly before making a large purchase, can increase your overall credit score. Your debt-to-income ratio is an important aspect of your credit score, as it often indicates your ability to repay a loan. For example, a high debt ratio (usually anything over 40 percent is considered too high in the industry) can alert a creditor that you may have difficulty repaying your loan because of too much debt.
• Check up on your credit report. Ordering a copy of your credit report, at least once or twice a year, and checking it thoroughly for mistakes, can help you maintain a strong credit score. In addition, you will also want to order a copy of your credit score, from all three credit reporting agencies, before making any large purchases to ensure that your credit rating is accurate and up to date.