10 Hacks to Boost Your Credit Score

Improving your credit score is one of the most effective ways to lower your interest rates and increase your buying power. Use these strategies to increase your credit score. Even if you are already under contract on a home your lender can rescore you all the way up until 3 days before you close on the loan. 

1. Aim for the 620 Milestone

In Utah, reaching a credit score of at least 620 is critical for unlocking specific $20,000 grant programs designed for first-time buyers. A score of 660 unlocks the best interest rate with the Utah Housing Program. Meeting this benchmark can significantly reduce your monthly mortgage payment.

2. Maintain a "Credit Utilization" Ratio Below 30%

Amounts owed account for 30% of your total credit score. To maintain a high score, keep your credit card balances below 30% of your available limit. For example, if you have a $1,000 limit, ensure your balance stays under $300.

3. Leverage the "Authorized User" Strategy

If you have a trusted family member with a high-limit, low-balance credit card and a long history of on-time payments, ask to be added as an authorized user. This can potentially jump your score by 20 points or more very quickly.

4. Protect Your Oldest Accounts

The length of your credit history represents 15% of your score. Avoid closing old credit cards, even if you do not use them, as closing them can shorten your history and accidentally lower your score right when you need it most.

5. Automate All Minimum Payments

Payment history is the single largest factor in your score, accounting for 35% of the total. Even a payment that is late by just one day can have a negative impact that lasts for years. Set up autopay for at least the minimum due on every account to ensure you never miss a deadline.

6. Consult Your Lender Before Paying Old Collections

While it may seem counterintuitive, paying off old collections can sometimes temporarily lower your score. Always have your lender run a simulation to determine if paying a specific debt will help or hurt your mortgage application.

7. Diversify Your Credit Mix

Lenders prefer to see that you can manage various types of credit, such as installment loans (car or student loans) and revolving credit (credit cards). If your profile only contains one type, responsibly adding a small installment loan can build a more robust profile.

8. Monitor for Errors and File Disputes

Mistakes on your credit report can unfairly lower your score. Review your reports from all three major bureaus (Equifax, Experian, and TransUnion) for free annually at AnnualCreditReport.com and immediately dispute any inaccuracies.

9. Limit New Credit Inquiries

New credit accounts for 10% of your score. Avoid opening new store credit cards for furniture or appliances while you are in the mortgage process, as these inquiries and new debts can reduce your score or disqualify your loan approval.

10. Track Your Progress Regularly

Use free services like Credit Karma or your bank's mobile app to check your score monthly. Understanding where you stand is the first step toward homeownership and allows you to catch any sudden changes before they impact your pre-approval.

Next Steps

If you are ready to stop guessing and start planning your path to homeownership, let’s chat for 5 minutes this week. We can review your current progress and look at available grant opportunities.