How to Improve Your Credit Score
A higher credit score can save you tens of thousands of dollars in interest over the life of your home loan. Follow these practical tips before applying.
What Actually Makes Up Your Score
Lower Credit Card Utilization Below 30% (Ideal < 10%)
Credit utilization accounts for ~30% of your score. Pay down balances on revolving credit cards before your statement closing date.
Do NOT Close Old Credit Accounts
Length of credit history makes up 15% of your score. Closing an old credit card reduces your total credit limit and shortens average account age.
Avoid New Credit Hard Inquiries Before Applying
Hold off on opening new credit cards, financing furniture, or auto loans right before or during your mortgage process.
Correct Errors on Your Credit Reports
Check AnnualCreditReport.com for inaccuracies or fraudulent accounts. Disputing incorrect late payments can yield quick score gains.
Set Up Automatic Payments for 100% On-Time Record
Payment history is the single largest component (~35%) of your score. Even a single 30-day late payment can significantly lower your score.
CRITICAL WARNING: What NOT To Do During Your Loan Process
- Do NOT change jobs or quit without consulting Oakley Pike first.
- Do NOT make large cash deposits into bank accounts without a clear paper trail.
- Do NOT co-sign loans for friends or relatives.
- Do NOT make major purchases (cars, appliances, furniture) on credit cards.
Need a Rapid Credit Simulator Analysis?
Oakley Pike can run custom credit simulator scenarios to show you exact dollar amounts to pay down for maximum score boost!