How to Improve your Credit Score

 

Ready to buy a house but need to fix your credit first? Improving your credit score is all about showing lenders you’re responsible with credit. Here are the best ways to do that:

1. Pay Bills on Time
   • Payment history is the biggest factor (35%) in your credit score.
   • Set up auto-pay or reminders to avoid missing payments.
     
     
2. Reduce Credit Card Balances (Credit Utilization)
   • Try to keep balances below 30% of your credit limit.
   • Below 10% is even better for top scores.
     
     
3. Don’t Close Old Accounts
   • The length of your credit history matters (15% of your score).
   • Keep older accounts open, especially if they have no fees.
     
     
4. Avoid Opening Too Many Accounts at Once
   • Each new application causes a hard inquiry, which can slightly lower your score.
   • Space out credit applications.
     
     
5. Diversify Your Credit Mix
   • Having a mix of credit types (credit cards, car loans, student loans, etc.) helps your score.
   • But don’t open new credit just to diversify—only if you actually need it.
     
     
6. Check Your Credit Reports
   • Get your free credit reports from AnnualCreditReport.com.
   • Look for errors like incorrect balances or late payments and dispute them.
     
     
7. Become an Authorized User
   • Ask a family member or trusted friend with good credit to add you to their credit card.
   • Their positive history can help boost your score.
     
     
8. Use a Credit-Building Tool
   • Tools like secured credit cards or credit-builder loans are great if you’re just starting out or rebuilding.

 

If you’re trying to fix bad credit, it may take a few months to a year to see significant changes, depending on your situation. Ready to talk to a mortgage lender? Give us a call! We’d love to help you with your home purchase.

 

Disclaimer:
The information provided in this blog is for general educational purposes only and should not be considered credit counseling, legal, or financial advice. Chambers Bank is not a credit counseling agency and does not offer individualized credit counseling services. If you are experiencing financial difficulty or need personalized assistance with managing your credit, we encourage you to contact a certified credit counseling organization such as Credit Counseling of Arkansas (CCOA) or another qualified professional.