How to Raise Your Mortgage FICO Score Quickly

Lenders use your FICO score to assess your creditworthiness, determining the risk of lending you money.

A higher score makes you a more attractive borrower, potentially securing lower interest rates and better terms.

Most mortgage lenders require a minimum FICO score of 620 for conventional loans, while FHA loans may accept 500 scores with a higher down payment.

Wouldn’t you prefer a loan with lower interest rates, saving thousands over time, rather than paying more just because of a few points on your credit score?

Now, let’s explore how you can raise your score quickly.

1. Check Your Credit Report for Errors

Your credit report serves as the foundation for your FICO score, and even small inaccuracies can drag your score down. Start by obtaining a free copy of your credit report from AnnualCreditReport.com and review it carefully for errors, such as:

• Incorrect account balances
• Accounts you don’t recognize
• Late payments that were actually made on time

If you find any mistakes, dispute them with the credit bureaus immediately. Correcting errors can improve your score in as little as 30 days.

Think of your credit report like a resume—if there’s misinformation, it could keep you from landing the opportunity or loan you deserve. Learn more about how to increase your credit score before buying a home.

2. Pay Down Credit Card Balances Strategically

One of the quickest ways to boost your FICO score is by lowering your credit utilization ratio, which measures how much of your available credit you’re using. Aim to keep your credit utilization below 30%—or even better, under 10%.

If you have multiple credit cards, focus on paying down those with the highest balances relative to their limits. This targeted approach will have the greatest impact on your score. Consolidating debt with a mortgage refinance is a quick way to raise you credit scores quickly.

Wouldn’t you feel more in control knowing that a slight shift in how you manage your credit cards could boost your score and save you thousands?

3. Become an Authorized User on a Trusted Account

If a family member or trusted friend has a credit card with a high limit and a solid payment history, consider asking them to add you as an authorized user. Their positive credit behavior will reflect on your credit report, potentially giving your score a quick lift.

While not every lender factors authorized user accounts into their decision-making, many do, and the impact can be significant.

Think of this strategy as catching a ride on someone else’s credit success—just make sure the driver is responsible.

4. Make All Payments on Time

Payment history accounts for 35% of your FICO score, making it the most influential factor. If you’ve fallen behind on any payments, get current as soon as possible. Once you’re up to date, make every payment on time moving forward, even if it’s just the minimum amount due.

If your payment history is spotless, you’ll see gradual improvements to your score in one to two months. For those with past delinquencies, the sooner you correct the issue, the quicker you’ll see a rebound in your score.

5. Request a Credit Limit Increase

A higher credit limit reduces your credit utilization ratio without requiring you to pay off any balances immediately. Contact your credit card issuers and request an increase in your credit limit. If approved, this will improve your credit utilization and, in turn, boost your FICO score. If you have a HELOC, request a credit limit increase.

Be cautious not to increase your spending with the new credit limit—maintain discipline to benefit from this strategy.

6. Use Experian Boost

Experian, one of the three major credit bureaus, offers a free tool called Experian Boost. This tool allows you to add positive payment history from bills like utilities, streaming services, and phone payments to your credit report. These payments, traditionally not included in credit reports, can now count toward your FICO score.

The boost can occur almost instantly after you link your accounts, making it one of the fastest ways to see results.

Why wait months for your credit to improve when a few clicks with Experian Boost can move the needle in your favor today?

7. Keep Old Accounts Open

The length of your credit history is another important factor in your FICO score. Closing old accounts, even if they are paid off, can shorten your credit history and negatively impact your score. Instead of closing unused accounts, leave them open to maintain a long and healthy credit history.

8. Apply for New Credit Sparingly

Every time you apply for new credit, a hard inquiry is added to your credit report, which can lower your score by a few points. If you’re planning to refinance your mortgage or apply for a HELOC loan soon, avoid applying for new credit cards or loans.

9. Set Up Payment Alerts or Auto-Pay

Missing payments, even by a day, can hurt your score. To avoid this, set up payment reminders or enroll in auto-pay with your creditors. Staying on top of your payments is crucial, especially in the months leading up to your mortgage application.

10. Monitor Your Progress Regularly

Improving your FICO score requires patience and monitoring. Use tools like Credit Karma or your credit card’s free credit monitoring service to track your progress. Keeping an eye on your score will help you identify areas for improvement and ensure your efforts are working.

Think of your credit score like a garden—you need to tend to it regularly to see it grow.

Takeaway on Raising Your Mortgage Fico Scores

Raising your FICO score quickly is entirely possible with the right strategies in place. From paying down credit card balances and disputing errors to becoming an authorized user and using Experian Boost, each step plays a crucial role in improving your credit profile.

Ultimately, your FICO score isn’t just a number—it’s the key to securing a better mortgage with favorable terms, saving you money in the long run. So why wait? Start improving your score today and open the door to better financial opportunities.

References

Experian. (2023). What is a good credit score? Retrieved from https://www.experian.com

FICO. (2023). How your FICO score is calculated. Retrieved from https://www.myfico.com