We’re happy to share industry secrets and insider advice, so you can make the most informed decisions.

Tip No. 20

Utilize secured credit cards, which are backed by a cash deposit that usually represents the credit limit. Your one-time payments to “refill” the credit represent the same thing as monthly credit card payments.

Tip No. 19

Have a relative or close friend add you to their credit card as an authorized user. While this can improve your score, it works better for those with no or very limited credit history like children or younger family members. An authorized user can make purchases with the account but do not make monthly payments.

Tip No. 18

When applying for a loan, know that your credit scores and utilization rate are updated by the credit company roughly every 30 days at the end of the billing cycle. Making a payment or an approved increased limit may not be reflected in your credit report immediately.

Tip No. 17

After an extended period of paying your credit bills on time, ask your bank for an increase to your credit limit. This can improve your utilization rate and make you more appealing for a loan.

Tip No. 16

Pay your bills on time as payment history has the most impact on your FICO and Credit Score.

Tip No. 15

While fixed-rate mortgages are typically better in the long-term, an Adjustable-Rate Mortgage is a viable option for borrowers that anticipate moving and selling their house within a few years.

Tip No. 14

Monitor your credit month-to-month to make sure your habits are improving your score. Checking your own credit doesn’t affect your credit score.

Tip No. 13

Keeping your credit utilization rate below 10% improves your chances of qualifying for a loan. Do this by keeping all your credit payments (utilities, phone, credit cards, etc.) consistent and at least 10x less than your credit limit.

Tip No. 12

Applying for credit (hard inquiry) because you were pre-approved or to “test the waters” is not advised. Applying for these types of credit consistently for an extended period of time will signal to lenders you are taking on too much debt.

Applying for the same type of loan/credit within the same 14 to 45 day timeframe will limit the number of hard inquiries on your credit report.

Tip No. 11

Experian Boost allows homeowners to improve their credit scores with documented proof of bill payments. Experian Boost connects to your bank account and allows users to select any utility, phone, Netflix, Hulu, Disney+ or HBO bill that was paid in full and on time.

Tip No. 10

UltraFICO allows homeowners to improve their credit scores through documented sound financial behavior. UltraFICO connects to your checking and savings accounts and checks for a history of positive balances, frequent transactions and periods of consistent cash withdrawals to provide a free UltraFICO score that is typically higher than traditional FICO scores.

Tip No. 9

When paying off student loans or any other outstanding accounts, don’t pay it off all at once. Making full and timely payments will improve your score more than closing out the account will. Keeping an account with a $0 balance is better than closing it out.

Closing the account will lower your credit limit thus lowering your score and your utilization rate will go up should you have another outstanding credit card or loan.

Tip No. 8

Repossessions, foreclosures, settlements or other late payments and delinquencies can stay on your credit report for up to 7 years. Bankruptcies can last up to 10 years.

Tip No. 7

Utilizing rent reporting services that add your on-time rent payments to your credit report can improve your credit scores. All three major credit bureaus include rent payment history in their reports if they receive it. FICO 9 and FICO 10 also include rental payment history in their reports.

Tip No. 6

An easy way to improve your credit is to simply call your creditor and ask about the factors that are decreasing your score. U.S. law requires that creditors provide their customers with 1 free credit report per year. Make a plan to check this yearly to confirm any expired debt is removed from your credit report.

Tip No. 5

When making monthly mortgage payments, homeowners have the option to let the bank calculate their payment using the principal loan amount and interest on that amount or roll over any taxes and mortgage insurance fees into that payment as well. Should the buyer choose to calculate their monthly payment with just their principal and interest, the buyer is responsible for the separate, lump-sum insurance and tax payments. These payments can cost thousands and occur once or twice a year.

Banks are interested in including your insurance and tax payments in your monthly payments because failure to pay them results in a tax or insurance lien on the property.

Tip No. 4

While car dealerships primarily use credit reports, when applying for a mortgage most lenders will check your FICO score. This score is pulled from the 3 major credit bureaus Equifax, Experian, and Transunion. This makes for a tighter score range than standard credit scores.

Tip No. 3

Your credit usage affects your score just as much as missed payments. A good benchmark to work toward is an under 10% usage rate for your credit card(s).

For example: You own four credit cards with a $5K limit which equals to $20K total limit. Ideally, you should try to spend $2K before paying off your bill.

Tip No. 2

Start saving early and make a financial plan when considering applying for a mortgage. This will enable you to present your best possible credit score, FICO/UltraFICO, debt-to-income ratio, utilization rate and credit history. Your credit/FICO scores are important but the reason why you need the loan and your positive documented credit history also matter.

Tip No. 1

Prior to applying for a mortgage or any loan make sure your FICO score is in good standing (minimum 650) and you have no recent bankruptcies, foreclosures or participated in a short-sell for a certain number of years before depending on the loan type.