The Denise Dutson Team


You know that your credit score is incredibly important when you want to buy a home. There’s certain things that you could be doing in your everyday life that are hurting your credit score. Here’s what you need to avoid in order to keep your credit score up:


Don’t Allow For Too Many Credit Inquiries


When you’re at the checkout lane at the store, and the clerk informs you that you can save a lot of money if you just open this instant credit card on the spot, that can pose a problem. The issue with this is that the store will be instantly checking your credit score as well. These inquiries hang on your credit report for a certain amount of time. Certain inquiries can also make your score dip. Too many credit inquiries can make lenders suspicious of your ability to be a dependable borrower.



Unpaid Bills Can Add Up


If you forget to pay small credit card bills here and there, it could add up. Think of things like library books, medical bills, and credit card payments. That unreturned library fee that you never paid could come back to haunt you. A medical bill that was sent to collections can become a problem on your credit report. Most of the time, all you need to do is pay these fees up for your score to bounce back. 


Credit Report Errors


Your credit report could have incorrect information about your financial situation and records. Your credit score could be dragged down just because of some errors on the report. If you do find an error on your report, you’ll be able to submit a claim to rectify the error. 


Using Too Much Of Your Available Credit


Just because a credit limit is at $5,000, doesn’t mean that you need to max it out. Even if you pay your bills each month, using too much of your available credit can really harm your score. For your credit score to be calculated and to see how loan worthy you are, your total available credit and how much of that total credit is being used will be put into a formula. Beware of how much of your credit you use in order to keep that score up.


Not Touching Your Credit


You actually need to use your credit in order to build your score. You need credit history in order to have something for loan officers to work with. Accounts that become inactive over time will be closed by default and actually negatively impact your score. 


By using your credit responsibly, you’ll keep your credit score up and be in good shape to buy a house.


Having a high credit score is one of the most important and helpful things you can achieve before buying a home. A solid credit history will give you a better chance of being approved for the home loan you want and getting a lower interest rate so that you know you’re getting a good deal on your first home.

But, as any renter can tell you, it can sometimes be difficult to lift your credit score when you’ve got so many other things to worry about.

In today’s post, I’m going to cover the best ways to build credit while renting an apartment so you can lift your score to an amount that will help you achieve your goal of homeownership.

1. Take over the bills

If you live with roommates or with your family, one good way to start building your credit score is to simply put more bills in your name.

If you’re certain that you’ll be able to make on-time payments on them each month, this can be a way to boost your score without much thought.

Keep in mind, however, that not all utility companies report your payments to credit bureaus, so it’s a good idea to check that yours does before putting the bills in your name.

2. Become an authorized user

If taking out new credit isn’t an option for you, becoming an authorized user on someone else’s credit account can help you increase your score.

Be sure to find out whether the credit issuer reports payments for authorized users before taking this step. And, once you’re sure that they do, you can be added to the account without changing anything about your spending.

3. Convince your landlord to report your rental payments

In most cases, rental payments aren’t reported to the credit bureaus. However, it is becoming more common. Check to see if your landlord uses a service like PayYourRent or RentTrack. If not, consider asking them to try it out.

4. Solving the “no credit” problem

Since we all start off with a blank slate in terms of credit history, some renters have the issues of not having enough credit information to start building their score.

If this is the case, it might be a good idea to open your first credit account. But, wait! Before you start racking up debt on your first credit card, take a minute to make a wise plan.

First, don’t change your spending habits just because you have credit. Pick a card that offers rewards in the form of cash back, and only use your card for things like gas and groceries that will help you earn points.

Then, set your card to auto-pay in full each month so that you never start accruing interest. This way, you’ll build your credit score and earn money (in the form of rewards or cash back), making it a win-win.


There’s so much to consider when to comes to buying a new home. The first issue is that of your finances. You need to make sure that you’re preparing financially for the home search, and not just making your list of “wants” for a new home. It’s an exciting time when you’re purchasing your first home, but don’t let the excitement overtake your responsibility. Here’s some tips to keep you on the financial straight and narrow path when preparing to buy a home: Be Mindful Of Your Credit Score There’s many factors that can affect your credit score. Applying for new credit cards is one of those factors. Your credit score will drop a few points every time you have a new credit inquiry or open a new account. If you do get approved for new credit, lenders may have concerns that you’ll spend up maxing out your new approved credit limit on that account and possibly default on your loan. Closing credit accounts is another factor that greatly affects your credit score. You may think that closing unused accounts is a good idea to help get yourself financially ready for becoming a homeowner. This isn’t true. Closing accounts lowers your amount of overall available credit. This means that your debt-to-credit ratio is larger. This lowers your overall credit score. You can certainly make these smart financial changes after you close on your new home. Keep Records When you move your money around, make sure you have records of it. Your lender will want to know about any unusual deposits and withdrawals. You’ll need to prove where your money comes from. All of the cash that you’ll be using for your home purchase should be in one account before you apply for a mortgage. Keep Up With Your Bills Don’t increase your debt. This will have an affect on the very important debt-to-income ratio which is one of the most vital aspects of loan approval. Also, be sure that you don’t skip your payments on bills. Your history of payments is incredibly important as well. Be sure that you continue to make full, on-time payments on all of your bills. Keep Your Job Even though a new job could mean a raise, or a better situation for you and your family, it could delay you in getting a mortgage. You’ll need to have your employment verified along with pay stubs to prove your source of income. Lenders like to see a longer employment history. Keep Saving The biggest up front costs in buying a home is that of closing costs and the down payment. Those must be paid at the time of closing. Lenders may even verify that your savings is on hand. Keep saving steadily and be sure to keep your savings in place.



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