Your credit score directly affects your mortgage rate. A 720 score vs. 680 could mean 0.5% - 1% lower rate — that’s $100+ per month on a $300,000 loan.
Here’s how to boost your score before applying.
Quick Wins: 30-60 Days
1. Check Your Reports
Get free reports at AnnualCreditReport.com. Dispute errors — they happen more often than you think.
2. Pay Down Credit Cards
Utilization matters. Keep balances below 30% of limits. Better: below 10%.
3. Don’t Close Old Cards
Length of credit history = points. Keep old accounts open, even if unused.
4. Become an Authorized User
Got a family member with good credit? Being added as an authorized user can boost your score.
5. Don’t Apply for New Credit
Every inquiry drops your score 2-5 points. Stop applying for cards, loans, or financing.
Medium-Term: 3-6 Months
6. Pay Bills On Time
Payment history is 35% of your score. Set up autopay.
7. Catch Up Delinquencies
Past-due accounts hurt. Bring them current.
8. Reduce Debt
Lower overall debt-to-limit ratio = higher score.
Understanding Credit Scores
| Score Range | Rating | Impact |
|---|---|---|
| 800+ | Exceptional | Best rates |
| 740-799 | Very Good | Great rates |
| 670-739 | Good | Moderate rates |
| 580-669 | Fair | Higher rates |
| Below 580 | Poor | Limited options |
Mortgage-Specific Tips
DTI Matters Too
Lenders look at debt-to-income ratio. Keep debts low relative to income.
Credit Mix Helps
Having both revolving (cards) and installment (auto loans) accounts can help — but don’t buy a car just for this.
Don’t Co-Sign
Co-signing ties their debt to your report. If they miss payments, your score drops.
How Much Can You Save?
| Score | Rate (30yr Fixed) | Payment on $300K | Monthly Savings |
|---|---|---|---|
| 640 | 7.5% | $2,098 | — |
| 680 | 6.75% | $1,947 | $151 |
| 720 | 6.25% | $1,847 | $100 |
| 760 | 6.0% | $1,796 | $51 |
20-point boost = ~$100/month savings
Start Today
Credit improvement takes time. The sooner you start, the better your rate. Even small improvements add up.
We’ll check your credit scenario and find the best program for your situation.
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