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 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 to let us guide you through the process of the best strategy for you as an individual.

9d1f07bf c03f 45af 90ce a3dd00c165f6 fbcb4739 4e67 4c57 9f39 abf4f15330c0 b97af51a 8dcf 4f4e 8918 053b401fe4f2 3cae2164 e999 40ec a909 785b2cc45cae f14a2d09 1cc5 41a5 8e09 1692b947bf05 3feecf60 5f07 4256 abb0 66bce19128c1 041c4584 e8f3 45d4 90b6 1bbbb3d850c5 3e2ec8bf ecc3 466e 96c6 d1679f240767 9040db6e f0ed 4d59 a37f 1b2c9c1d3510 2be188e1 74ed 4426 a4ce bcf4aa8b9674 0e763f52 95a8 406a ab91 6cd49ac3d175 c9f59e75 ad55 49dc ac95 8ae189e04672 4d55e733 d754 4ee2 a1ea a47d5825bd36 9250b5d9 a954 49bd a777 72f2552ae82f 78d3f1ef 1fa0 452a a96b c82d18eeee6b b409d897 395f 4904 b5c0 8713fbc3cb58 3a3efd6b ca8d 4d0a bdd3 dcd7f1b6e17d 254a1786 b661 4edc 889b 5cc9e822002b a8a7787a 262e 4b82 b403 8efa4adcf8b3 9f0800ec f296 402c 8857 423c7f7630f6 6a5c4f8a 70d4 4e35 8bb4 62d8a3c9aa24 e274e87c 77eb 48b6 9135 0b944399f3ae 5158c0ff ef4d 4bb3 9139 521dd147906c