Credit Score Improvement
Boost your credit score to qualify for better mortgage rates and terms
Understanding Credit Score Ranges
How Credit Score Affects Your Mortgage
Example: $300,000 loan, 30-year fixed mortgage (rates are illustrative)
| Credit Score | Interest Rate | Monthly Payment | Qualification |
|---|---|---|---|
| 760+ | 6.50% | $1,896 | Excellent |
| 700-759 | 6.72% | $1,924 | Good |
| 680-699 | 6.89% | $1,946 | Fair |
| 660-679 | 7.10% | $1,973 | Limited |
| 640-659 | 7.54% | $2,032 | Difficult |
| 620-639 | 8.07% | $2,099 | Very Limited |
Quick Wins for Credit Improvement
Check Credit Reports
Get free reports from all three bureaus
Dispute Errors
Challenge any incorrect information
Pay Down Balances
Reduce credit utilization below 30%
Set Up Auto-Pay
Ensure all payments are on time
Request Credit Increases
Ask for higher limits on existing cards
Become Authorized User
Add yourself to family member's account
Credit Score Factors & Improvement Strategies
Payment History (35%)
HIGHEST PRIORITY- Pay all bills on time, every time
- Set up automatic payments for minimum amounts
- Pay off past-due accounts immediately
- Contact creditors to arrange payment plans
- Consider becoming an authorized user on family member's account
Timeline
Immediate impact, continue monthly
Credit Utilization (30%)
HIGH PRIORITY- Keep balances below 30% of credit limits
- Aim for under 10% for best scores
- Pay down existing balances
- Request credit limit increases
- Don't close old credit cards
Timeline
1-2 months after implementation
Length of Credit History (15%)
MEDIUM PRIORITY- Keep old accounts open
- Use old cards occasionally to keep them active
- Become authorized user on family member's old account
- Don't close your first credit card
- Be patient - this improves with time
Timeline
Long-term strategy
Credit Mix (10%)
LOW PRIORITY- Have different types of credit (cards, installment loans)
- Don't open new accounts just for mix
- Auto loans and mortgages help diversity
- Avoid store credit cards unless necessary
- Focus on other factors first
Timeline
Gradual over time
New Credit (10%)
LOW PRIORITY- Avoid opening new accounts before mortgage application
- Limit hard inquiries to 2-3 per year
- Shop for mortgage rates within 14-45 day window
- Don't apply for credit cards during home buying process
- Wait until after closing to open new accounts
Timeline
Immediate impact from inquiries
Credit Improvement Timeline
Immediate (0-30 days)
Check credit reports, dispute errors, set up automatic payments, request credit limit increases
Short-term (1-3 months)
Pay down balances below 30% utilization, see impact from error disputes, establish payment history
Medium-term (3-6 months)
Continue consistent payments, maintain low utilization, see significant score improvements
Long-term (6+ months)
Build credit history length, maintain excellent habits, qualify for best mortgage rates
🏛️ Official Credit Resources
Free credit reports from all three bureaus
Consumer Financial Protection Bureau guidance
Federal Trade Commission credit guidance
Learn about FICO scores and credit