Credit History: A good credit rating can make a huge different when applying for a mortgage or looking to refinance an existing one.

Many people looking to refinance a mortgage have no idea how important a good credit history can be. At the very least the interest rate you are quoted on your mortgage refinance will reflect how positive your credit history (your credit score) is � but more than that, a sufficiently bad credit history can result in your mortgage refinance being denied completely.

In preparing to apply for a mortgage refinance make certain that all of your outstanding debts are up-to-date. That means you need to make sure that you are not behind in any credit card or other debt payments.

If you have more than two major credit cards you may want to consider canceling some. While you may think it�s good to have a large line of credit-card credit �just in case,� your banker may look at it very differently. Even if you never use certain credit cards or even if you keep the balances paid off every month, your banker may still look upon your cards as a liability. From a banker�s point of view, the fact that the credit is available to you means that you can use it at any time and place your mortgage loan in jeopardy.

Taking out a consolidation loan and paying off several credit cards (and then canceling the cards) can also help your credit rating.

The difference between having a good credit history and a poor credit history can mean a difference in 1 or even 2 percentage points on your loan � which can add up to some pretty hefty numbers over time.

In fact, many people refinance a mortgage not when interest rates drop, but when their credit scores improve! Get your credit history looking as good as possible before you apply for a mortgage refinance and you�ll find that you�ll get better rates and terms and that you stand a much better chance of being approved for your new loan.