Tips to Boost Your Credit Score

Improving your credit score doesn’t happen overnight, but with a few smart strategies, you can ensure your score is as strong as possible when it’s time to apply for a mortgage. Here’s how:

1. Keep Your Credit Reports Accurate

• Request a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion) at least once a year.
• Review your reports for errors and dispute any inaccuracies promptly.

2. Be Mindful of Credit Inquiries

• Multiple credit checks in a short time can temporarily lower your score. However:
  • Mortgage and car loan inquiries are grouped together as a single inquiry if done within a short period, so they won’t hurt your score as much.
  • Consumer-initiated inquiries (when you request your own credit report) have minimal impact.

3. Focus on Payment History and Balances

• Always pay bills on time. Even one late payment can hurt your score significantly.
• Avoid “maxing out” your credit cards—try to keep balances low relative to your credit limit.

4. Avoid Taking on Unnecessary Debt

• Don’t open new credit accounts unless you really need to.
• Keep existing accounts open to maintain a longer credit history (unless the account has high fees).

5. Manage Major Credit Events Carefully

• Bankruptcy filings and foreclosures can lower your score significantly and remain on your credit report for up to 10 years.
• If you’re struggling financially, consider speaking with a credit counselor before reaching this point.

6. Play the Long Game

• By consistently managing your credit well, you can add up to 50 points per year to your score.

Building and maintaining a strong credit score takes time and effort, but the payoff is worth it. If you need help understanding how your credit impacts your mortgage options, let’s chat!