How to Improve Your Credit Score

Your credit score is one of the most important factors in getting approved for a mortgage and securing the best interest rates. Even a small improvement in your score can save you thousands of dollars over the life of your mortgage. Here's how to boost your credit score effectively.

Understanding Credit Score Ranges

800+

Excellent

Best rates available, easy approval

720-799

Very Good

Great rates, high approval odds

650-719

Good

Decent rates, generally approved

600-649

Fair

Higher rates, may need larger down payment

<600

Poor

Alternative lenders, much higher rates

10 Proven Ways to Boost Your Credit Score

1 Pay All Bills On Time

Payment history accounts for 35% of your credit score. Set up automatic payments to never miss a due date.

Impact: High • Timeline: Immediate

2 Reduce Credit Utilization Below 30%

Keep credit card balances under 30% of your limit. Under 10% is even better. Pay down balances strategically.

Impact: High • Timeline: 1-2 months

3 Don't Close Old Credit Cards

Length of credit history matters (15% of score). Keep old cards open even if you don't use them.

Impact: Medium • Timeline: Long-term benefit

4 Dispute Errors on Your Credit Report

Check your Equifax and TransUnion reports for mistakes. Dispute any errors immediately—this can boost your score quickly.

Impact: Varies • Timeline: 30-45 days

5 Limit New Credit Applications

Each hard inquiry can drop your score 5-10 points. Avoid applying for new credit 6 months before buying a home.

Impact: Medium • Timeline: 2 years to fully recover

6 Become an Authorized User

Ask a family member with excellent credit to add you as an authorized user. Their good history can boost your score.

Impact: Medium-High • Timeline: 1-2 months

How Much Can You Save?

Example: $400,000 Mortgage Over 25 Years

Score 760+ (Excellent) 5.0% rate = $2,326/month

Score 680-759 (Good) 5.5% rate = $2,453/month

Score 620-679 (Fair) 6.5% rate = $2,712/month

💰 Improving from Fair to Excellent saves $386/month = $115,800 over 25 years!

Timeline for Credit Improvement

30 days: Pay down credit cards, dispute errors
3 months: Consistent on-time payments show up
6 months: New positive history established
12 months: Significant score improvement visible

Start now—even small improvements make a difference!

How to Improve Your Credit Score for Better Mortgage Rates