DO NOT wait until you are actively searching for your next house to discover your credit score.  Your credit score may determine if you get your home loan and your dream house!

Our marketing team at ReeceNichols put together a guide of 7 Ways to Improve Your Credit Score.  I hope my clients will take the time to review it well before we start analyzing the housing market.  It is shocking how many people are surprised by their credit rating when they apply for pre-approval to purchase a home.  By that time, it is very late in the process and it may be difficult to alter your credit score.  Don’t “pay” for your over site.  Here’s a quick summary of the 7 steps.

7 Ways to Improve Your Credit Score:

Fix Any Mistakes On Your Credit Report.

Once a year you can view your current credit report at AnnualCreditReport for no charge.  You can also visit the 3 main credit bureaus and address some errors online.  Experian, TransUnion and Equifax are the places to start.

Pay Off Credit Card Balances.

Did you know you should have your credit utilization ratio to below 30%?  That means the amount of credit your are using should be below 30% of your actual available open credit.  Lower is better.  Pay off your cards and keep your balances low.

Increase The Credit Limits On Existing Cards Only.

Remember, do this only to EXISTING cards.  This will also help reduce your credit utilization ratio that we discussed on the last tip.

If You Have Zero Credit Cards, Get One.

You need to establish some credit.  Getting a credit card and using it wisely will establish credit in your name.  Do not open any additional cards if you already have one or more.

Pay Off Car, Personal or Student Loans.

Paying off outstanding loans will boost your credit score.

Leave Unused Credit Cards Open.

This sounds crazy, but canceling credit cards will actually lower your credit score.

Pay Bills on Time.

Do not pay any bills delinquently.  All those late payments get reported to the credit bureaus – even late gym payments.  This is critical in the year leading up to your first mortgage application.


So friends, if you are thinking about a home mortgage, learn your credit score.  If your score is less than great, do something about it now.  You can correct errors, implement strategies to improve your score and DO NOT do anything to lower your score.

Contact me when your ready to discuss Real Estate (buying or selling).  As you know, it is my favorite subject.

Wishing you “extra credit”


Bob Myers

Bob Myers Properties
Community Focused, Architecturally Passionate, People Proven

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