Improve your credit score for homebuying | 6 Tips to Good Credit


Improve your credit score for homebuying

Looking to buy a home soon, or just want to be sure you’re mindful of a good credit score, Holly Henbest has the top six tips to make you look good on paper!


  1. Revolving Credit
    1. Your credit score is impacted most significantly if you keep your balance at two different tier levels – the two are:
      1. 50 percent or less of the limit or
      2. 30 percent or less of the limit
    2. So, if you have a credit card with a $10,000 limit, keep your balance at under $5,000 or even better under $3,000.
    3. You would be better to have three credit cards with a total limit of $30,000 and a total balance of $9,000, then one credit card with a limit of $10,000 and a balance of $9,000.
  2. Authorized User Status
    1. Did you get included on a family members credit card for convenience? Get yourself removed. Call the credit card company and ask to get yourself removed and ask to have them send you a letter to confirm you’ve been removed.
  3. Checking your Credit
    1. Don’t get your credit pulled to check things on a frequent basis.
    2. It’s good to be aware, but the more you have your credit pulled, it can hurt your score.
  4. Paying Off/Closing Credit Cards
    1. We hear it all the time and its true, don’t close your credit card account.
    2. You may get excited when you pay it off and just want it gone, but don’t close it.
    3. Instead just shred your card and don’t use it.
  5. Have a collection?
    1. Contact a Mortgage Banker and they can coach you on getting this removed.
    2. Remember, once you pay a collection, you have no negotiation power.
    3. Ideally you want the collection removed.  Getting it paid doesn’t really help your score.  You need it removed to help your score.
  6. Use a credit simulator.
    1. Some Mortgage Bankers have a credit simulator and they can plug in scenarios of if you pay down a credit card, how much will your score go up. 
    2. So, before you decide who and how much to pay, have the Mortgage Banker check it out on the Simulator.

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