#20 Tips to Improve Your Credit Score

This is not really a blog that will improve your home, but it will help you get the home of your dreams.
Your credit score is one of the most important factors mortgage lenders use to determine if you qualify for a loan and the subsequent interest rate. If your credit score is not where it needs to be to allow you to purchase the home of your dreams, follow these easy suggestions:

Pay on time: The core rule is to meet your debt obligations on-time, every time. If you have had payment lapses in the past but your habits have improved, time is on your side. The credit scoring rules weight recent experience more heavily than older experience.
Obtain a credit card and pay the balance every month. If your credit is not good, you may have to apply for a secured credit card at first. These cards require that you put funds in up front.
Pay down all credit cards. Balances will reduce ability to qualify for a mortgage.
Use you credit cards lightly.  Do not charge up to the credit's limit. Keeping the balance at 30% of the limit increases your credit score.
Dust off old credit cards.  Use your credit card for a small charge and pay it off at the end of the month. Little used cards can be closed by the lender and this will hurt your score.
Secure an installment loan and pay on time. An installment loan with timely payments builds your credit.
Correct mistakes in your credit report: Your score should not be reduced by reporting mistakes, which are all too common.


Your credit score, calculated from information in your credit report, is a measure of how good a risk you are to a credit grantor. A large proportion of borrowers who can't qualify for a mortgage would qualify if their credit score was higher. Many borrowers can repair their own qualification credentials.

Any lender to whom you apply will obtain your score and provide it to you. As noted below, however, inquiries by lenders may have a negative effect on your score, whereas inquiries by you do not. Hence, it is a good idea to find your score before you apply, so you can make an informed decision on whether you want to apply at that time.

You can obtain your score from many firms in the business, including www.equifax.com, www.transunion.com, www.experian.com and www.myfico.com.