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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🔥 The 5 Biggest Underwriting Mistakes Borrowers Make — And How to Avoid Them in 2026
🔥 The 5 Biggest Underwriting Mistakes Borrowers Make — And How to Avoid Them in 2026
⚡ Avoid These 5 Underwriting Mistakes to Get Approved Faster (Mortgage Tips for 2026 🏡)
⚡ The 5 Biggest Mistakes Borrowers Make During Underwriting (And How to Avoid Them)
When you apply for a mortgage, underwriting is the final gatekeeper between you and the closing table. And here’s the truth:
Most loans don’t get denied because of bad credit or low income —
❌ they get denied because borrowers make avoidable mistakes during underwriting.
As a mortgage broker at Medallion Funds, I see these mistakes every week. The good news?
If you know what to avoid, you can speed up approval, lower your stress, and position yourself as a stronger borrower.
Here are the 5 biggest underwriting mistakes — and how to avoid them like a pro.
1️⃣ Making Big Purchases Before Closing
This is easily the #1 underwriting killer.
Buying:
• A new car 🚗
• Furniture 🛋️
• Appliances
• Even opening a store credit card
…can instantly change your debt-to-income ratio, and underwriting will catch it.
How to Avoid It:
If it’s not essential to life or survival… don’t buy it until after closing.
Ask your lender before making any large purchase.
2️⃣ Depositing Large Amounts of Cash Without Documentation
Underwriters must verify the source of every large deposit.
Unexplained funds are a massive red flag.
How to Avoid It:
• Don’t use cash.
• Don’t move money between accounts unnecessarily.
• Send your lender screenshots or statements before you transfer funds.
If the money isn’t “paper-trailed,” it may not be usable for your loan.
3️⃣ Changing Jobs or Income Structure Mid-Process
Job changes = instability in the eyes of underwriting.
Even if you're getting a raise, switching from W-2 to 1099 or salary to commission can kill the deal.
How to Avoid It:
If possible, wait to change jobs until after closing.
If it’s unavoidable, call your lender before signing anything.
4️⃣ Ignoring Requests for Documentation
Underwriting is slow when borrowers respond slow.
The longer it takes to submit:
• updated paystubs
• bank statements
• explanation letters
• tax documents
…the longer your entire loan is delayed.
How to Avoid It:
• Respond within 24 hours.
• Upload clean, full documents (no screenshots missing pages).
• Ask your broker which documents to gather in advance.
Fast docs = fast approval.
5️⃣ Opening New Accounts or Applying for Credit During Underwriting
Underwriting pulls a soft credit refresh before closing.
If they see new inquiries or new accounts?
Your file goes back to review.
Your approval can be revoked.
Your rate can change.
Your closing can be delayed.
How to Avoid It:
This is simple: Do not touch your credit until you have keys in your hand.
Final Takeaway
Underwriting isn’t the enemy — it’s the process that protects both you and the lender.
If you avoid these 5 mistakes, you can:
✅ Get approved faster
✅ Protect your rate
✅ Reduce stress
✅ Close on time
✅ Strengthen your buying power
And if you want a smoother experience from start to finish, Medallion Funds is built to guide borrowers — buyers, investors, doctors, and self-employed professionals — through underwriting the right way.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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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. Copyright © 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
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/