H.O.M.E. Course Credit Score Booster Tipsheet

Credit Score Booster Tipsheet

Fast & Simple Ways to Raise Your Credit Before Buying a Home – this is one of the tools in the H.O.M.E. Home Ownership Made Easy free course.

Your credit score matters more than you think. Just a few points higher can mean a lower interest rate, lower monthly payment, and thousands of dollars saved over the life of your loan. The good news? There are steps you can take right now to improve your score — even in the next few months.

Here’s your step-by-step game plan:

1. Pay Down Small Balances

   1. Knock out small credit card balances first.
   2. Why? Paying them off eliminates those minimum payments, which lowers your debt-to-income ratio and helps your score.
   3. Even wiping out a $200 card can give your credit a quick lift.

2. Keep Credit Utilization Low

   1. Try to keep your credit card balances under 30% of the limit.
   2. Example: If your limit is $1,000, keep the balance under $300.
   3. The lower the better — under 10% is ideal if you can swing it.

3. Don’t Close Old Accounts

   1. Keep older credit cards open, even if you don’t carry a balance on them.
   2. Why? They help your score in two ways:
   3. Credit history length: Older accounts show stability and responsible use.
   4. Lower utilization: Having more available credit (even unused) spreads out your balances, which improves your score.
   5. Closing old accounts reduces your available credit and can make your utilization ratio jump higher.

4. Make Every Payment On Time

   1. On-time payments are the single biggest factor in your score.
   2. Even one late payment can drop your score by 50–100 points.
   3. Set up autopay or calendar reminders so you never miss.

5. Ask for a Credit Limit Increase

   1. A higher limit (with the same balance) lowers your utilization percentage.
   2. Example: If you owe $500 on a $1,000 card, that’s 50%. Raise the limit to $2,000 and it drops to 25%.
   3. Don’t spend the extra credit — just use it to improve your ratio.

6. Become an Authorized User

   1. Ask a trusted family member with good credit to add you as an authorized user on their card.
   2. Their positive payment history can boost your score quickly.

7. Dispute Errors on Your Report

   1. Mistakes happen — wrong balances, closed accounts marked open, etc.
   2. Pull your free report at AnnualCreditReport.com and dispute errors with Experian, Equifax, and TransUnion.

8. Mix Up Your Credit Types (If Possible)

   1. Lenders like to see a mix: credit cards, auto loan, maybe a small personal loan.
   2. Don’t open new accounts just before buying, but if you already have a mix, it helps your score.

9. Avoid New Hard Inquiries

   1. Don’t apply for store cards or random loans right before buying.
   2. Each hard inquiry can ding your score by 5–10 points.

10. Pay Twice a Month Instead of Once

    1. Credit card companies report balances at the end of your billing cycle.
    2. Paying mid-cycle keeps your reported balance lower, which helps your utilization score.

Quick Credit Boost Checklist

• Pay off small balances
• Keep credit use under 30%
• Pay on time, every time
• Keep old cards open (helps history + lowers utilization)
• Ask for a limit increase
• Dispute errors on your report
• Avoid new credit until after closing