Credit
Last updated: Jan 202510 min readHow to Improve Your Credit Score
Boost your credit to qualify for better mortgage rates
Your credit score is crucial for getting approved for a mortgage and securing the best rates. Here's how to understand and improve your score.
1Understanding Credit Score Ranges
Know where you stand:
- 800-850: Exceptional - Best rates available
- 740-799: Very Good - Qualifies for most favorable rates
- 670-739: Good - Qualifies for most loans
- 580-669: Fair - May qualify for FHA loans
- 300-579: Poor - Limited options, higher rates
2The 5 Factors That Affect Your Score
FICO scores are calculated from:
- Payment History (35%): Pay all bills on time, every time
- Credit Utilization (30%): Keep balances below 30% of limits
- Length of Credit History (15%): Older accounts are better
- Credit Mix (10%): Having different types of credit helps
- New Credit (10%): Limit new applications
3Quick Wins for Score Improvement
Actions that can boost your score fast:
- Pay down credit card balances (biggest quick impact)
- Become an authorized user on a family member's old account
- Dispute errors on your credit reports
- Ask for credit limit increases (without increasing spending)
- Set up autopay to never miss a payment
4Long-Term Credit Building
Strategies for sustained improvement:
- Keep old accounts open (even if unused)
- Diversify your credit mix gradually
- Apply for new credit sparingly
- Monitor your credit regularly
- Be patient—good credit takes time to build
Pro Tips
- Check your credit reports for free at AnnualCreditReport.com
- Errors are common—dispute anything incorrect
- Don't close old credit cards before applying for a mortgage
- A secured credit card can help rebuild poor credit