Your credit score has a bigger impact on your mortgage than almost any other factor. The difference between a 680 and a 740 credit score can translate to thousands of dollars in interest over the life of your loan. The good news: targeted improvements work fast.
Pull Your Credit Reports First
Before doing anything else, pull your credit reports from all three bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com. Look for errors, outdated negative items, and accounts you don't recognize. Disputing errors can result in meaningful score increases within 30 to 45 days.
Pay Down Credit Card Balances
Credit utilization — how much of your available credit you're using — accounts for 30% of your FICO score. If your cards are above 30% utilization, paying them down is the fastest way to see a score increase. Ideally, get each card below 10% utilization before applying.
Don't Close Old Accounts
Length of credit history matters. Closing old credit card accounts shortens your average account age and reduces your available credit, both of which can hurt your score. Keep old accounts open even if you don't use them.
Avoid New Credit Applications
Every hard inquiry from a new credit application can temporarily drop your score by 5 to 10 points. In the 3 to 6 months before applying for a mortgage, avoid opening new credit cards, car loans, or other financing.
Become an Authorized User
If a family member has a long-standing credit card with a low balance and perfect payment history, ask to be added as an authorized user. Their positive history can appear on your credit report and boost your score.
The 30, 60, 90 Day Plan
In 30 days: dispute errors and pay down high-utilization cards. In 60 days: confirm disputes are resolved and keep balances low. In 90 days: apply for your mortgage with a stronger score. Dan can pull a soft credit check at any point to show you exactly where you stand and what's affecting your score — no commitment required.
Not sure where your credit stands?
Call Dan at (661) 342-9381 — he'll run the numbers for your specific situation in minutes.
Call Dan Now
Dan Ardis has 20+ years of mortgage experience, including as a Senior Specialty Underwriter. He serves Bakersfield families and clients across 49 states through Barrett Financial Group.