When planning to buy a house, your finances will be scrutinized. Your FICO score—commonly known as a credit score—is one of the most important factors mortgage companies will look at when deciding if they're willing to lend to you. With a higher score, you're more likely to be approved for a loan and get a better interest rate. Unfortunately, many people's scores are low enough to cause trouble finding a lender. However, there are some simple tactics that can raise a credit score with relative ease.

How to Boost Your Credit Before Getting a Home Loan

1. Fix Credit Report Errors

Start by checking your credit report, which is available for free through the government’s Annual Credit Report website. This is where to find an up-to-date FICO score and a detailed breakdown of the accounts and debts contributing to the credit rating. 

Carefully look through these reports for any errors. Sometimes, an error may be present that indicates you have more debt than you actually do. Sending a dispute letter to the credit bureau is necessary to remove the error and improve the score.

2. Reduce Credit Utilization

Credit utilization accounts for 30% of a FICO score. Generally, the less available credit you’re using, the higher the score will be due to the suggestion that the user is responsible with their money. 

For many people, a large proportion of their credit utilization comes from credit card balances. Pay off as much of your credit card balances and other outstanding debts as possible to see your score start climbing toward where it needs to be.

3. Avoid New Credit Accounts

Keeping accounts open for a long time is viewed as a positive. At the same time, applying for several new accounts in a short period of time can hurt your score. When preparing to buy a house, focus on maintaining existing accounts rather than applying for new cards or loans.

Once you've nudged your score up and are ready to buy a house, you’ll need a real estate agent to help navigate the transaction. Adam’s Realty Group in Belleville, IL, offers a licensed team with in-depth knowledge of local communities and real estate listings. They'll work with you to find the right match for your preferences and budget. To learn more about their expertise, call (618) 234-8751 to speak to a team member.