How to Raise Your Credit Score When Buying a Home

If you are in the market to buy a home or refinance or even finance a car loan, less than perfect credit scores can cost you thousands of dollars over the term of the loan.   Borrowers should take the initiative and work on getting their scores higher before applying for a loan.   In many cases, increasing your credit scores may take less than 30 days.    Here are some tips to help you when reviewing your credit scores and debt. We are a leading provider of home loans in San Diego as well as the whole state of California.

Get a Current Credit Report

This can be done by working with a mortgage broker or by requesting one online by sites like   In some cases, these free credit report show your history but do not offer your credit scores.  A current credit report will show you all of your active and closed tradeline accounts as well as recent inquiries.  It is important to check your credit at least once per year.   Many suggest subscribing to a credit monitoring company to help which will be discussed shortly.

Pay down Revolving Balances

Pay down revolving credit card balances to at least a 40% balance of the high limit.  In many cases, I see borrowers have several credit cards with balance at or near the high limit.  This is driving your credit score down.   In many cases, your credit scores will jump several points by paying down balances to around 40% of the high limit.

Keep Older Accounts in Good Standing

Do not close out credit cards that are not being used.   In many cases, I see borrowers closing out credit cards because they just dont use them anymore.  If you are not being charge an annual fee, you should leave these account open.  By closing these accounts out, you are closing a tradeline in good standing and overall limiting your credit limit.   Closing an account can actually decrease your credit score.

Beware of Paying of Collection Accounts

Paying off a collection account.  In many cases, most borrowers feel that paying off a old collection will improve their credit scores.  This is not the fact in all cases.  If the collection is old, paying it off can actually bring your score down or have no affect at all.   In these cases, I advise you to speak to a mortgage professional or credit repair company who have access to simulators who can better guide you in the right direction.   In some cases, when paying off a collection, a tradeline deletion letter from the collection company is best as it will erase the tradeline from your credit report once it is paid off.

Seek Credit Repair Advice From a Professional

Seek advise from a credit repair company or mortgage professional who has experience and access to credit simulators who can let you know what accounts are to best addressed, especially if you have a limited amount of funds to be used toward your credit repair.  These simulators have the ability to apply a certain amount of money to certain account to show what direction will give you the best outcome.

Keep an Eye on Your Credit Score Regularly

Join a Credit monitoring system to check your credit score.   In our current times, identity theft and credit fraud has been growing at a substantial pace.   Many companies now offer credit monitoring services to protect your from these type of fraud and the dark web.   Many company have affordable programs that are well worth the price of their services.  Do your research and choose a service that best suits your needs.

Limit Your Inquiries

Many borrowers want to get the best mortgage rate or car loan rate and start letting everyone check their credit score to get offers.  This is not wise.   Having multiple inquiries over a short period of time (30 days) will drive your credit score down.  It is best to know your credit score and ask your mortgage professional or car loan agent for a soft quote based on your verbal credit score.   These quotes will at least give you an idea if this company can offer you better terms than what you have.   Obviously, these quotes will not be binding until these companies receive your full documentation and run your credit but this will help you limit your inquiries to only companies that you want to work with.

Get Started on Rebuilding Your Credit Score Today

I invite you to contact me for further information or help with increasing your credit score.  Mathieu Pollenz of Parkview Investment & Loan is leading provider of mortgage loans and mortgage information.   Call 858-337-6968 to call Mathieu or leave an email at