Are You Giving Your Credit Score the Attention It Deserves?

If you’re thinking about buying a home 🏡 or refinancing your current one, it’s time to show your credit score some love. Understanding your score and knowing how to improve it can make all the difference when lenders evaluate you.

🏦 How Is Your Credit Score Determined?

Your FICO credit score tells lenders if you’re a responsible borrower. Factors include:

• Paying bills on time
• Credit card usage
• Loan repayment history (car, student, mortgage)
• Any bankruptcies, tax liens, or collections

Each major credit bureau—Experian, TransUnion, Equifax—collects information and calculates your score, which may vary slightly across bureaus.

Remember: your credit score is based on how you manage credit, not your income or investments.

💡 Why Your Exact Score Matters

The higher your credit score, the lower your interest rate. Simple! Lower rates save you money over the life of your loan.

• 740+: Best rates, most loan options
• 720–740: Slightly higher rates (+0.125%)
• 680: Good, but rates are higher
• Below 660: Limited options; some lenders may deny a loan

For refinancing, banks usually expect a FICO score of at least 620, plus a healthy debt-to-income ratio.

🔍 Start Monitoring Your Credit Score Today

Don’t wait until you’re ready to apply for a loan to check your score. Start 3–6 months early to give yourself time to fix any issues.

• Track online: Use services like MyFICO.com for alerts
• Free reports: Get one from each bureau every 12 months via AnnualCreditReport.com
• Stagger reports: Receive one every 4 months to keep an ongoing check

📈 How to Raise Your Credit Score

Here’s how to impress lenders and boost your FICO score:

• Analyze & plan: Identify why your score is low and address the issues
• Pay on time: Late payments make up 35% of your FICO score
• Increase credit limits: Keep balances low to show creditworthiness
• Avoid major purchases: Don’t rack up new debt during the loan process
• Maintain old accounts: Length of positive credit history matters
• Monitor debt-to-credit ratio: Keep it around 30% or lower
• Negotiate with creditors: Request goodwill adjustments for minor late payments
• Check for errors: Dispute inaccuracies on your credit report
• Pay small fines: Parking tickets or library fines can affect your score if turned over to collections

Now that you know how your credit score works and how to increase it, you’ll be on your way to getting the best interest rates and loan programs available! 💰