Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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⚠️ 3 Lies Homebuyers Still Believe About Credit Scores
⚠️ 3 Lies Homebuyers Still Believe About Credit Scores
💡 3 Credit Score Myths That Could Cost You Your Dream Home
⚠️ 3 Lies Homebuyers Still Believe About Credit Scores
When it comes to buying a home, few topics cause as much confusion as credit scores. Between outdated advice and online myths, many homebuyers still make avoidable mistakes that can delay — or even derail — their mortgage approval. Let’s debunk the top three credit score lies that keep borrowers from success.
Lie #1: You Need Perfect Credit to Get a Mortgage
This one stops too many potential buyers before they even apply. The truth? You don’t need an 800 score to qualify.
·FHA loans can approve borrowers with scores as low as 580.
·Conventional lenders often accept scores in the mid-600s with compensating factors.
The focus isn’t perfection — it’s consistency and responsibility. Late payments hurt more than low balances, and one or two blemishes won’t ruin your chances if the rest of your financial profile is strong.
Lie #2: Checking Your Own Credit Hurts Your Score
Another myth that refuses to die. When you check your credit, it’s considered a soft inquiry, which has zero impact on your score.
Hard inquiries — like when you apply for new credit cards or multiple loans — are the ones that can temporarily lower your score by a few points.
Pro tip: Use free tools like Annual Credit Report: https://www.annualcreditreport.com/index.action
Experian, Trans Union, and Equifax all have online access now where you can track your progress and dispute errors before applying for a mortgage.
Here are the three major U.S. credit‐reporting agencies where clients can file disputes and check status:
1.Equifax — https://www.equifax.com/personal/credit‐report-services/credit‐dispute/ Equifax+1
2.Experian — https://www.experian.com/disputes/main.html Experian
3.TransUnion — https://www.transunion.com/credit-disputes/dispute-your-credit transunion.com+1
Lie #3: Paying Off Debt Instantly Fixes Your Score
Paying off debt helps — but it’s not a magic button. Credit scores update when creditors report new balances, which can take 30–60 days.
Lenders also look at your credit utilization ratio, so closing paid-off accounts too soon can actually hurt your score by lowering your available credit.
A smarter move? Keep your oldest accounts open and maintain low balances. That builds both trust and credit depth, two major factors underwriters love.
✅ Final Takeaway
Credit myths cause fear — and fear keeps people from homeownership.
Your credit report tells a story of responsibility, not perfection. With the right loan program and a little preparation, your dream of homeownership can happen sooner than you think.
👉 Ready to see where you stand? Let Medallion Funds review your credit profile and guide you toward the best loan options available.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
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Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/