If you’re aiming to purchase a home or refinance, a solid credit score can make all the difference in securing a favorable loan. Improving your credit score doesn’t have to be complicated. There are straightforward steps you can take to give it a boost. At Edge Mortgage, Inc., we think having tips to increase your credit score is important because we believe in educating our clients. The more you know, the more you can be empowered in your home-buying journey. We work hard to remove costly and difficult mortgage processes by replacing them with high-quality customer service. We want your experience to be as stress-free and easy as possible.
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We know how essential a strong credit score is for getting the best mortgage terms. So, let’s dive into the details of our top tips to increase your credit score and get you closer to your goals.
1. Check Your Credit Report Regularly
One of the first tips to increase your credit score is to keep an eye on your credit report. Errors can sneak in and even a small mistake could negatively impact your score. Review your report for any inaccuracies, like accounts you didn’t open or payments marked as late when they weren’t. If you spot an error, you can dispute it with the credit bureau to have it corrected. Checking your report regularly helps ensure everything is accurate and allows you to address issues before they affect your mortgage approval.
2. Pay Your Bills on Time
Payment history is one of the biggest factors affecting your credit score. Even one late payment can cause a drop, so make timely payments a priority. If you tend to forget due dates, consider setting up automatic payments or adding calendar reminders. Consistent on-time payments will steadily build up your score and show lenders that you’re a reliable borrower.
3. Lower Your Credit Utilization
Credit utilization refers to how much of your available credit you’re currently using. Ideally, try to keep your credit usage below 30% of your total credit limit. For example, if you have a credit limit of $10,000, aim to keep your balance under $3,000. Reducing balances on credit cards and other revolving accounts can have a significant impact and is one of the most effective tips to increase your credit score.
4. Avoid Opening New Credit Accounts
Every time you open a new line of credit, it results in a “hard inquiry,” which can slightly lower your credit score. While new credit accounts can sometimes help increase your credit limit (and reduce your utilization ratio), adding too many inquiries at once can raise a red flag to lenders. If you’re planning to apply for a mortgage soon, it’s best to hold off on opening new credit cards or taking out personal loans unless necessary.
5. Keep Old Accounts Open
The length of your credit history also plays a role in your score. Closing an old account shortens your credit history, which can lower your score. Instead, keep older accounts open, especially if they have low or zero balances. However, try to use them periodically so they don’t get closed due to inactivity. This can help improve the average age of your accounts, which is viewed positively by lenders.
6. Consider a Credit-Builder Loan or Secured Credit Card
If you’re looking to build or repair your credit, a credit-builder loan or secured credit card can be helpful tools. A credit-builder loan is specifically designed to help improve credit scores and a secured credit card, which requires a security deposit, can help you establish a history of responsible credit use. Both of these options give you a chance to make on-time payments, building up your score over time.
7. Diversify Your Credit Mix
Lenders like to see a balanced mix of credit, such as installment loans (like car loans or mortgages) and revolving credit (like credit cards). Having both types in your credit history can improve your score, but only if it makes sense for your finances. Avoid overextending yourself just to add credit types. Focus on managing what you have responsibly.
8. Be Patient and Consistent
One of the most important tips to increase your credit score is to be patient. Improving your score is a journey, not a quick fix. Consistency in making on-time payments, managing your balances, and avoiding unnecessary credit applications will yield results over time. Stick with these practices and you’ll see gradual improvements in your score.
How Edge Mortgage, Inc. Can Help
At Edge Mortgage, Inc., we understand how important a good credit score is in securing the best mortgage terms. Whether you’re looking to buy your first home or refinance, we’re here to help guide you through the process and find the best loan options for your situation. We’re happy to offer personalized advice and answer any questions you may have about preparing your finances and improving your credit.
A strong credit score can open doors to better mortgage rates and more favorable loan terms. By following these tips to increase your credit score, you can build a solid financial foundation that will serve you well on your home-buying journey. If you’re ready to explore your mortgage options or want to learn more about how your credit score impacts your financing, contact Edge Mortgage, Inc. today. We serve all of Colorado, Wyoming, Ohio, and Nebraska and we’re here to support you every step of the way!
Check Out These 5-Star Reviews From Satisfied Clients
“Keri and her team were so incredible in helping my fiancé and I with the purchase of our new home and sale of our old home. We found out we needed to sell in order to purchase and she was able to get our loan process started within hours. Keri was always available when needed and was willing to answer any questions we had. She is very knowledgeable about the process of buying/selling a home from the financial side and is willing to explain anything! We will certainly be working with her again in the future and would recommend her to anyone!” -Hanna
“My husband and I used Keri’s services to refinance our home. Keri was extremely responsive and patient with answering all of our questions and helping us make the best decision for us. She provided great customer service, which is almost non-existent these days. The process was very easy. We were never left hanging wondering what was going on or what the next steps were. Keri was awesome to work with and worked hard for us. I would use her again and highly recommend her services.” -Melissa
CONTACT EDGE MORTGAGE, INC. TODAY!
Edge Mortgage, Inc. is located in Johnstown, Colorado, and serves Ohio, Colorado, Wyoming, and Nebraska. We offer honest answers and a stress-free process and we have no hidden or extra fees, keeping more money in your pocket. We are your trusted mortgage broker and we are ready to serve you. Call us today at 970-744-0000.
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