Improve your Credit

6 STRATEGIES TO IMPROVE YOUR CREDIT BEFORE BUYING A PROPERTY

Buying a home is much more than waking up one day and deciding, “I’m going to buy a house.” It’s usually a process that takes months or even years.

A low credit score can negatively impact your ability to buy property. In the U.S. financial system, the credit score—a three-digit number—plays a major role. It reflects how well you manage debt and financial obligations. Even people with high incomes but no credit history (because they pay in cash) can have poor credit scores.

Many people only pay attention to their credit when they need a loan or large purchase. For most, buying a home is one of life’s biggest investments, and a mortgage is often the only way to achieve it.

A low credit score can result in:

• Higher interest rates

• Longer loan approval times

• More income verification

• A larger down payment

• Loan rejection

Don’t let poor credit delay your dream—start improving your credit today!

First things first:

Check your credit score. If you’re not monitoring it, you might get an unpleasant surprise. The federal government allows you to access 3 free credit reports per year (make sure to use official websites—some try to charge).

6 Key Tips to Improve Your Credit

1. Balance Your Debt
   Pay off your credit card balances. Keep usage under 30% of your available credit. Using a card is fine—just avoid high balances.

2. Pay On Time
   Timely payments are critical. Late payments (15+ days) start to hurt your score. Set up reminders or auto-pay if needed.

3. Don’t Close Old Accounts
   Pay off cards, but don’t close them—at least not until after your mortgage is approved. Keeping credit lines open helps your score.

4. Open New Accounts
   Opening new credit cards (and not using them much) can reduce your credit utilization ratio, potentially boosting your score quickly.

5. Avoid Big Purchases
   Don’t take vacations or buy large items before applying for a mortgage. Big charges can make your credit look weak to lenders.

6. Plan Ahead
   Credit repair takes time. Be patient and start months in advance. Improving your score is a process—plan for the future.

Summary:
Before buying a home, improve your credit: check your score, pay debts on time, keep old accounts open, avoid big purchases, and plan ahead. A better score means better loan terms and fewer obstacles to owning your dream home.