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
Ready to Apply with Better Credit?
Once you've improved your credit score, connect with a loan officer who can help you secure the best possible mortgage rates.