Four Creative Ways to Improve Your Credit before Buying a Home

Real Estate Agent with Solid Source Realty

Four Creative Ways to Improve Your Credit before Buying a Home

Planning to buy a home in the near future? If so, the time may be right to start thinking about ways to improve your credit score.

Both your credit score and your credit history will be examined extensively before you become eligible for a mortgage. Lenders will determine the amount to provide on the basis of this information. Is your current credit score far from the best it could be? Here are several creative ways that will help you improve credit to buy a homes.

Leave Old Debt on Your Report
It may sound completely illogical but leaving old debt on your report could actually do good things for your credit score. This is considered good debt – it’s part of your history but it has been paid off in due time.

There’s no need to argue about its removal from your credit score. Old debt is actually showing that you are punctual and capable of making the repayment in a timely manner. New debt is the one you should be worried about if you want to improve credit to buy a home.

Avoid Risky Behaviors
Your credit score could sink easily, which is why you have to be careful about all financial decisions you make.

There are two easy ways in which you can ruin the credit score you worked so hard for. Missing a payment or charging more than you usually do are both considered risky behaviors.

Using your credit card to make purchases indicative of financial stress could also be a red flag. A pawn shop credit card use, for example, is considered a risky behavior. Though it will not necessarily harm your credit score, it could do some damage to your reputation.

Don’t have Too Many Inquiries
Considering application for a new credit card? Think again! Each time you apply for a card or a new loan, the creditor will make an inquiry about your score and history. If you get too many inquiries within a short period of time, you risk having your credit score reduced significantly.

The only exception is applying for a mortgage or a car loan. In such instances, you can have additional inquiries that will have no impact on your score whatsoever.

Use Your Credit Card
You’ve probably heard that using your credit card is bad if you want to improve your credit. The truth is that you can use the technique to improve your credit to buy a home.

Nearly 30 percent of your credit score is based on the debt to credit limit ratio. Be responsible in your use and make purchases to improve your credit score. Make sure that all credit card debt is paid in a timely manner.

Improving your credit score requires some fiscal discipline but you have many strategies to rely on. Come up with a plan and stick to its execution, if you’re eager to become a homeowner in the near future.


Cliff, Realtor: (678)495-6050

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Posted by

Cliff J , Real Estate Agent in Stone Mountain Georgia, Certified First Time Home Buyer  



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Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

Hi Cliff, you provided four very good ways to improve credit before buying a home.

Jan 17, 2015 04:05 AM #1
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Cliff - Great advice on ways to improve your credit score. I have found that using the credit card and paying it off each month can get you a credit score over 800.

Jan 17, 2015 11:58 AM #2
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Cliff - Thanks for the very helpful list of four tips to improve credit before buying a home.

Jan 17, 2015 12:38 PM #3
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

Great tips! Many folks DON'T use their credit cards... thinking it is a good thing! :)

Jul 02, 2015 03:50 AM #4
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Cliff Johnson

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