Tips to Improve Credit Score

Real Estate Agent with Tierra Antigua Realty SA624527000



Thinking about buying a new house?  Wondering where to begin?  First thing a potential buyer should do is speak with a local lender, get pre-approved.  This is vital for many reasons, no sense going on a road trip if there is not gas in the car, right?  Same thing with your credit and buying power.   Check to see what rates you qualify for, type of loan, $ required for down payment, max purchase price you qualify for, etc.  In Arizona we need to submit a signed pre-qualification form with an offer, as well.   Even if you do not qualify for the property you want now, a good local lender can explain where you are at, and what you can do to improve your scores.   That way, if you can't buy now, a new home can be a part of your future.

Some tips in regards to credit, paying off revolving accounts monthly may not  improve your credit score.  Many consumers mistakenly believe simply paying off revolving accounts each month will help their credit score. The opposite may be true.

Charging a large percentage of the limit each month will likely lower a consumer’s credit score even if they pay off the balance in full since the day that the creditor reports to the credit repositories is usually when there is a balance, not the few days of the month when the account is at zero.

It is the percentage of utilization of the limit on revolving accounts reported by the creditor that influences the credit score. Only if the consumer can time their payoff each month to coincide with the reporting cycle of the cardholder will paying off revolving accounts monthly help their credit score.


Once a buyer has been pre-approved, start a relationship with a local Realtor.  Good luck!


Comments (15)

Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Good information and advice Spirit.

Most people seem to work backwards.

Apr 09, 2015 08:04 AM
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

True Bob Publicover.   However, once they are pre-approved, we are ready to strike and act decisivley when we find "the one" buyers want to make an offer on.  While the other potential buyers are waiting around for the pre-qualification form, we have already written an offer and waiting a response.

Apr 09, 2015 08:09 AM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Great information...we just can not tell the public enough about this stuff.

Apr 09, 2015 08:28 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Spirit Messingham oh so true! I see such disappointment in buyers eyes when I tell them to get preapproved and then we can go out. 

Nothing worse than thinking you can afford one price only to find out you are in a lower price range.. or worse... there are issues preventing you from purchasing a home at all. 

Apr 09, 2015 08:58 AM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Spirit - All home buyers should consider contacting a lender first and getting pre-approved. It really is the best way to go about getting ready to purchase a new home.

Apr 09, 2015 09:36 AM
Spirit Messingham
Tierra Antigua Realty - Tucson, AZ
Third Generation Full-Time Realtor® 520 471-6900

Thank you Andrea Swiedler and Troy Erickson.   There is no "wrong" answer when getting pre-approved.   Buyers will know where they stand, areas to work on, etc.  I just got off the phone with a potential buyer where for her, moving to Tucson it might make more sense to rent for awhile first, before she is able to make the purchase she really wants.  And that is ok, getting pre-approved, buyers will know for sure where they stand.  Thanks for reading and the comments.


Apr 09, 2015 10:06 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Spirit - These are very valuable tips on to improve credit score.

Apr 09, 2015 12:57 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Spirit Messingham so true - making a minimum payment on credit cards does not help much! It's there so that it does not hurt any more!

Apr 09, 2015 02:33 PM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Spirit, I am always encouraging potential buyers to talk to a great lender who can help them get their credit score up.

Apr 09, 2015 09:07 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a timely post. Mnay renters are going to be looking to buy a home in spring. They should read this.

Apr 09, 2015 09:59 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Yes to this subject, the post, the host and the point of it all....thank you

Apr 09, 2015 11:38 PM
Scott Gleason
RE/MAX Select - Westfield, NJ
Westfield NJ New Homes Specialist

Hi Spirit,  Great reminders for our home buyers.  Thanks for sharing.  Happy Weekend!

Apr 10, 2015 10:17 AM
Stefen Lee Liberti
Rodeo Realty Fine Estates® - Los Angeles, CA

Great Info! I'm curious, how does one find out how to time their payoff each month to coincide with the reporting cycle of the cardholder? 

Apr 11, 2015 03:22 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Consumer's are woefully uneducated about what comprises a credit score. Great educational opportunite!

Apr 12, 2015 11:35 AM
Richard Woodward NMLS#217454
Cornerstone First Mortgage, NMLS #173855 - Dallas, TX
Service Beyond Expectations! Your Texas Lender

Good information.  As a lender, I look at credit reports all day.  Paying off the balance each month to avoid interest expenses is a great way to use your credit cards but it can hurt you when qualifying for a mortgage as Spirit Messingham  said.  A better approach is to not charge more than 30% of the limit and pay it off each month.  Never close accounts when getting prequalifed and if one does not have any open credit accounts, that is bad too.  I suggest my clients with credit issues and no account to open a revolving account right away.  Here is a great revolving card to get when preparing for mortgage approval and rebuilding credit.  Rebuild your credit today Easy qualifying credit card 

Apr 13, 2015 01:22 AM