Before you buy, getting a pre-approved for a home loan is a major detail in the process. That will help you and your family narrow down for your home search. It can be an intimidating step because your past and current spending habits affect the rate.


No matter where your credit score lands, it’s important to keep the number high to ensure the best rate for your family. It’s also never too early to execute good credit practices. Even if you aren’t quite ready yet to buy, start with improving your credit score to get your family where they need to be when the time is right because it could take months to a year for improvement if your score isn’t ideal.


Wondering how you earn an awesome credit score? 750 to 850 is considered excellent. Here are five key practices to get your credit in order in the quickest way possible:


Pay off or down your balances to 30 percent balance to limit or lower.


Having a credit card is an important step to building a credit score, but if you don’t use it, it won’t benefit you at all. Be sure you’re using your card and keeping track of your spending so you know where you are at when it’s time to pay it off. Pay off your balance when it’s possible or get it down to 30 percent or lower to avoid any penalties in your score.


You want to show that you are responsible for maintaining your balances and can pay off your debts in a timely manner. This is a big component of building your credit score.


Pay them on time.


Punctuality is an important quality for a lot of things in life. It also helps with improving your credit score. Use a calendar to write down deadlines and pay off or down your balances on time.


If you are unable to get your balances as low as you’d like, pay the minimum to avoid any drastic decreases in your score. Paying on time shows companies you’re responsible and ready to take on the funds that put you in credit. Never skip a payment.


Keep all your accounts.


A big misconception is that it’s bad to have lots of credit cards at once, so you should work on closing accounts. However, closing accounts is actually NOT the best thing you can do to boost your credit score.


Credit history is very important for building your credit score and if you close an account that you’ve built a long history with, it will directly affect your overall credit score like you are starting over. Even if you aren’t using all your credit cards, keep them on the back burner because together they are actually helping your overall score.


Be consistent.


If you have three credit cards and you’re using all three of them for small transactions, it might bump your credit score for the worse. Use your cards consistently to keep get your score up or maintain a good score.


Another way to be consistent with your credit is not to be drastic with credit charges one month and then minuscule the next. Keep your spending at the same rate and that will help with getting your score at the level you want it.


Be patient.


Improving your credit score can take months or maybe years as mentioned before to get at the level that is best for acquiring the ideal home loan for you. You can’t necessarily speed up the process. To help with the process, especially if you notice your score is below 650 because that is considered the borderline of poor credit, reach out to a credit counseling group. They will work with you and creditors to improve your score and assist with getting yourself on the right track.


Companies like Money Management International have programs that are aimed to keep you on top of your credit and set you up for success. They also have home buying classes that could help with the financial aspect as you are prepping to get a home loan.


Remember, all you can do is be patient and make sure you are taking all the tips mentioned above to heart. If you execute them all, you’re bound to see your credit score increase over time. Sometimes as quick as 3-6 months or it could take a bit longer. Keep monitoring your score regularly to ensure you are going in the right direction.


If you have any questions or would like to get your home buying process started, give us a call at 253-292-1132 or email us by clicking here.