Thinking About Buying a Home but Have Less Than Perfect Credit? Use These Tips to Boost Your Credit Score

Dated: June 13 2022

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Thinking about buying a home, but concerned that your credit score isn’t where it needs to be? Don't worry. There are steps you can take to increase your credit score and increase your likelihood of getting approved for a mortgage in the process.

So what, exactly, are these steps?

recent article from realtor.com outlined strategies potential buyers can use to boost their credit score in the months before purchasing a home, including:

  • Check your credit report for errors. Credit report errors are common (according to data outlined in the article, 25 percent of Americans find errors on their credit report). So, before you purchase a home, it’s important to go through your credit report to check for any errors. If you find any, you’ll need to contact all three credit bureaus (Equifax, Transunion, and Experian) to get the error removed. Once the error is off your credit report, your credit score will be adjusted accordingly—a process that typically takes anywhere from one to three months.
  • Pay down your balances. Credit utilization makes up 30 percent of your credit score—so if you want to boost your credit score (and do it fast!), paying down your outstanding balances is your best strategy. You can expect to see a change in your credit score the month after you pay down your balances (as your credit utilization will change).
  • Open a new credit card. Adding a new credit card can also be a way to boost your credit score—both by increasing your available credit (which should improve your credit utilization) and, depending on the type of card you get (for example, a retail card), by diversifying your credit types. Opening a new line of credit typically takes one to two weeks to be reflected in your credit score.

Our relationships with local lenders and other real estate professionals in the community ensure you are in the right hands and all are working together for you. So, if you think you are ready to start the process, reach out. We'd love to help you!

The Atlas Group is more than a real estate brokerage. We are family – committed to you every step of the way and beyond.  

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