How do I fix my credit?
How Do I Fix My Credit?
Your credit score plays a huge role in qualifying for a mortgage, determining your interest rate, and even impacting your ability to rent a home or get a car loan. If your score isn’t where you want it to be, don’t worry—you can take steps to improve it. Let’s go over what affects your credit score and how to fix it.
Understanding Your Credit Score
Your credit score is determined by five key factors:
Payment History (35%) – Do you pay your bills on time?
Credit Utilization (30%) – How much of your available credit are you using?
Length of Credit History (15%) – How long have you had credit accounts?
Credit Mix (10%) – Do you have different types of credit, like credit cards and loans?
New Credit Inquiries (10%) – How often are you applying for new credit?
👉 Source: MyFICO – Credit Score Factors
Steps to Fix Your Credit
1. Check Your Credit Report for Errors
Start by reviewing your credit report for mistakes. You can get a free report from all three major credit bureaus—Equifax, Experian, and TransUnion—once per year at AnnualCreditReport.com. If you find incorrect late payments or accounts that aren’t yours, dispute them with the credit bureau.
2. Pay Your Bills on Time
Since payment history makes up 35% of your score, late payments can have a big impact. Set up automatic payments or reminders to ensure you never miss a due date.
3. Lower Your Credit Utilization
Your credit utilization ratio is the amount of credit you’re using compared to your total credit limit. Aim to keep this below 30%, and if possible, under 10% for the best results. Paying down credit card balances can quickly improve your score.
4. Avoid Opening Too Many New Accounts
Each time you apply for credit, a hard inquiry is added to your report, which can lower your score temporarily. Try to limit new credit applications unless necessary.
5. Don’t Close Old Credit Accounts
The length of your credit history matters. Even if you don’t use an old credit card, keeping it open can help maintain a longer credit history and improve your score.
6. Consider a Credit-Building Loan or Secured Credit Card
If you’re rebuilding credit, a credit-builder loan or secured credit card can help. These accounts report to the credit bureaus and can establish positive payment history.
👉 Source: Consumer Financial Protection Bureau – Credit Building Tips
How Long Does It Take to Fix Credit?
Small improvements can happen within 30 to 60 days, but major changes may take 6 to 12 months. The key is consistency—keep making on-time payments and managing debt wisely.
Need Help Getting Mortgage-Ready?
If you’re working on your credit to qualify for a home loan, I can help! Let’s go over your credit situation and create a strategy to get you mortgage-ready.
📩 Send me a message to get started!
