When you're writing out your New Year's resolutions this year, why not add "improve my credit score" to your list?  By including a resolution to improve your personal financial literacy, you will not only be boosting your credit score, but will also be putting yourself in a much stronger financial position when it comes to getting better rates on future credit and helping you buy a home.  Follow these small steps below to get you started on your way...

One of the first steps in buying a new home is to take a realistic look at what you can afford and how you are going to pay for it. If you are like most people, you will probably have to finance your home purchase with a mortgage loan.

What is a mortgage....

In order to purchase a home, you must have an established credit history. Each time you pay a bill (for your credit card or for a monthly service such as your telephone or electricity), you are establishing a credit rating for yourself. A credit rating is a number or score that banks, mortgage companies, and other lending businesses use to assess your level of financial responsibility.

Paying your bills on time every month, contributes to having a good credit rating. If you miss payments, or are often late making your payments, your credit rating is probably...