Building Up Your Credit to Buy a Home: 5 Steps to Take

Home / Blog / Building Up Your Credit to Buy a Home: 5 Steps to Take

Building Up Your Credit to Buy a Home: 5 Steps to Take

If you are seeking to purchase a home and your credit rating needs improvement, you can take some concrete steps to increasing your score on your own. Developing a personalized strategy on how to improve your individual credit score is one that we can help you with at ubermortgage.com but for those of you who want to do it on your own. Here are 5 DIY actions you can take going forward to help improve your credit score.

  1. Pay down the largest debts. The best way to improve your credit score is to lower your credit utilization percentage. This means paying off credit cards and focusing on the largest balances first. In general, it’s a wise practice to keep your balances at zero or less than 30 percent of the available credit. People with the highest scores frequently keep the balances below 10 percent of the available credit.

  2. Make timely credit card payments. Pay within the grace period, which is typically 10 days, and avoid late fees. When you make a payment 30 days past the due date, each of the three major credit reporting companies will receive notification, and this will damage your credit score. If you have a tendency to forget, sign up for automatic payments to stay on time.

  3. Make payments above the minimum payment. Making minimum payments will typically only pay the interest on the credit card debt. You will not make a dent in the balance, and that should be your goal if you desire to become a homeowner.

  4. Review credit reports for mistakes and have them fixed. By law, the three major credit reporting company must supply you with one free credit report per year when you request one. Document any errors you find and write to each company requesting that the error be corrected. Be painstaking about providing the evidence of the error and keep records. This is an excellent way to improve your scores.

  5. Keep older accounts open even if they have a zero balance. The age of your credit is included in your credit score. Older credit cards that have been properly managed give you brownie points towards an improved score. It may be tempting to close an account you no longer use regularly, but this can have a detrimental impact. In addition, a closed account will not drop off of a credit report for quite some time. Lenders want to see that you manage available credit wisely rather than closing accounts.

These five steps will help you build a foundation that improves your credit score and bring you closer to the dream of homeownership. Follow them judiciously and methodically for the best results, and you should start seeing changes within months. Better yet, contact us at Ubermortgage.com to let us guide you through the process of the best strategy for you as an individual.


80ccdc53 7bcc 4370 95f0 3d15fdfa5f12 81d35242 22f8 43c6 a415 5e5438d5e16c 5f37413c d3ca 4a84 b5f8 81b8dacf099e b4132964 ac6c 4649 b0d3 2e57f20b07cd f07b3b18 f6f8 4849 8809 eb00390ea280 6c5cc5aa d871 443f 8e91 d46424ec3879 3b7704cb c49e 4830 905e 497b58990315 f341dbc7 15c6 44bb adf7 d1df1c5d981b d7c87954 78a8 4dcd b1d9 f16302c4ec7f b5a5cb96 da3e 400e afa0 5488d30545db 20b6b673 a491 4da3 bdb3 50ec2a800dd0 fe45bf83 bee6 4fef 9692 adfc9aa4bf1e a44dac74 cc25 4efe 891f bdb4383e59da 43f473ac 3774 4725 ba94 0a151816386e ffd4bc36 9eb4 4ac0 b599 c67e5fad6e1b 4238292b 2dd2 4abe 918e 028ce3698e0c 937177f8 d4ce 437c 88e9 a8a7652c9042 15c9baf8 c69f 4754 ba80 aace85675cf0 01d3eef7 3849 4852 8859 9144cfc40a39 22394f5c 556b 49e5 a26d 871db75f3235 2a721ff6 c81e 4b81 973a 9f6d60d4e2a4 038af04f 6a11 4ce4 a246 ac39b1e6d69f 2ebbc850 e853 46bc bce9 a2898e02e5bc