Credit Health
Strengthen Your Credit to Boost Mortgage Approval
Your credit score plays a vital role in qualifying for a mortgage — and in determining the interest rate you receive. By actively managing your credit, you can improve your score and increase your borrowing potential. Here are key tips to maintain and improve your credit health:
Keep Credit Card Balances Low
The amount of credit you use relative to your credit limit impacts your score. This is known as your credit utilization ratio.
Keep balances under 50% of your available credit limit
For best results, aim to pay your credit cards in full every month
A low or zero balance shows lenders you’re managing credit responsibly
Make Payments on Time
Payment history is one of the most important factors in your credit score.
Always make at least the minimum payment by the due date
Missed payments are reported to credit bureaus (Equifax & TransUnion) after 30 days
The more payments you miss, the more your score will drop
Accounts overdue by 120+ days may be sent to collections — and collections stay on your report for up to 7 years
Use Your Credit Cards Regularly
Having credit is only helpful if you use it and pay it off properly.
Use each credit card at least once every 3 months
Consider setting up a small, recurring pre-authorized charge (like a streaming service)
Pay the balance in full each month to avoid interest and build positive history
Check Your Credit Report Regularly
Stay on top of your credit by reviewing your report for errors or suspicious activity.
You can request a free copy of your credit report from Equifax and TransUnion
Look out for incorrect information, unauthorized accounts, or outdated records
Dispute any errors to maintain an accurate report
Other Key Tips for Building Strong Credit
Don’t apply for too much credit too often
Multiple inquiries in a short time can lower your score
Don’t close old, unused credit cards
Cards with long histories help your score — especially those in good standing
Paying off a collection doesn’t remove it from your report
It will remain for 7 years but will show as “paid” — still better than unpaid
Maintain at least two active trade lines
Trade lines include credit cards, loans, and lines of credit
Lenders prefer accounts with a minimum $2,500 limit, active for at least two years
Have a debt management plan
If you’re struggling, contact your lenders or consult a credit counselor to avoid damaging your credit further
Need a Credit Review?
Understanding and improving your credit takes time — but it’s a worthwhile investment in your future. If you’re not sure where you stand, we offer full credit reviews to help you build a tailored strategy and prepare for mortgage success.
Ready to buy your first home?
Contact Anoop Balakrishnan today for a personalized consultation and let’s take your first step together.