Your credit score is one of the most important factors in qualifying for a mortgage—and getting the best possible interest rate. Even a small improvement (like moving from a 650 to a 700 FICO score) could save you thousands of dollars over the life of your loan.

At Ethan Riley Enterprise, we help working-class families strengthen their credit profiles before applying for a mortgage. Here’s a step-by-step guide to repairing and boosting your credit score for homeownership success.

1. Check Your Credit Reports for Errors

30% of consumers have errors on their credit reports that could hurt their scores.

How to Fix Mistakes:

✔ Get free reports from AnnualCreditReport.com (weekly until December 2023).
✔ Dispute inaccuracies (late payments, wrong balances, fraudulent accounts) with Equifax, Experian, and TransUnion.
✔ Follow up until corrections are made—this can boost your score quickly.

2. Pay Down High Credit Card Balances

Credit utilization (how much of your limit you use) affects 30% of your score.

Quick Fixes:

✔ Keep balances below 30% of your limit (ideally under 10% for best results).
✔ Pay down highest-interest cards first (saves money long-term).
✔ Ask for a credit limit increase (lowers utilization, but don’t spend more!).

3. Avoid Late Payments at All Costs

Payment history is 35% of your score—just one 30-day late payment can drop your score 50-100 points.

How to Stay on Track:

✔ Set up autopay for at least the minimum payment.
✔ If you’ve missed payments, call lenders to negotiate removal (some will if you’ve been a good customer).

4. Don’t Close Old Accounts (Even If You Don’t Use Them)

Closing old credit cards shortens your credit history and increases utilization—both hurt your score.

Better Strategy:

✔ Keep accounts open, use them once every 6 months (to avoid inactivity closure).
✔ If you have no credit history, consider a secured credit card to build credit.

5. Limit Hard Inquiries Before Applying for a Mortgage

Each hard credit pull (from loans, credit cards, etc.) can drop your score 5-10 points.

Smart Moves:

✔ Avoid applying for new credit 6-12 months before mortgage shopping.
✔ If rate shopping, do it within a 14-45 day window (counts as one inquiry).

6. Consider Credit-Boosting Tools

✔ Rent Reporting Services

• Services like Rental Kharma report on-time rent payments to credit bureaus.

✔ Experian Boost

• Adds utility and phone bills to your credit history (free).

✔ Authorized User Status

• Being added to a family member’s old, low-balance credit card can help.

7. Be Patient—Credit Repair Takes Time

• Late payments stay on reports for 7 years (but impact lessens over time).
• Bankruptcies take 7-10 years to fall off.
• Positive habits (on-time payments, low balances) raise scores gradually.

Final Tip: Get a Credit Checkup Before Mortgage Shopping

At Ethan Riley Enterprise, we help clients:
✔ Review credit reports for hidden issues.
✔ Create a personalized plan to boost scores efficiently.
✔ Match you with lenders who work with your credit profile.

Bottom Line

Improving your credit score isn’t about perfection—it’s about progress. Even a 50-point increase can mean:

• Lower interest rates (saving $100+/month)
• Better loan options (FHA vs. conventional)
• Higher approval odds for your dream home

Need a credit game plan? Schedule a free consultation today—we’ll help you build the credit foundation for homeownership success!