Credit Score Tips
Improve Your Credit Score to Unlock Better Mortgage Rates
Your credit score plays a major role in determining your mortgage eligibility, interest rate, and even loan program options. At Ask Mortgage Authority, we believe in empowering borrowers with practical tips to boost their credit health—so you can qualify with confidence.
📊
Why Credit Score Matters in Mortgage Lending
Lenders use your credit score to assess how likely you are to repay a loan. A higher score often means:
- ✅ Lower interest rates
- ✅ More loan options (Conventional, FHA, VA, etc.)
- ✅ Lower private mortgage insurance (PMI)
- ✅ Easier pre-approval and faster underwriting
🔍
How Credit Scores Are Calculated
Your credit score is based on five main factors:
| Factor | Weight |
|---|---|
| Payment History | 35% |
| Amounts Owed / Credit Utilization | 30% |
| Length of Credit History | 15% |
| New Credit Inquiries | 10% |
| Credit Mix | 10% |
💡
Top Tips to Boost Your Credit Score
1. Pay Bills On Time
Set up autopay or reminders. Just one late payment can significantly lower your score.
2. Reduce Credit Card Balances
Keep usage below 30% of your credit limit—ideally below 10% for top-tier scores.
3. Avoid New Debt Before Applying
Limit hard inquiries and new accounts for 3–6 months before a mortgage application.
4. Don’t Close Old Accounts
Older credit lines help boost your average account age—an important scoring factor.
5. Check Your Credit Report for Errors
Dispute inaccuracies through the major credit bureaus (Experian, TransUnion, Equifax).
6. Diversify Your Credit
A healthy mix of installment loans and revolving credit can help long-term.
📈
What Credit Score Do You Need for a Mortgage?
| Loan Type | Typical Minimum Score |
|---|---|
| Conventional Loan | 620+ |
| FHA Loan | 580+ (with 3.5% down) |
| VA Loan | Flexible; usually 620+ |
| Jumbo Loan | 680–700+ |
| Non-QM | Case-by-case |
Higher scores may lower your rate significantly.
🛠️
Need Personalized Credit Advice?
Our mortgage experts can walk you through credit improvement strategies before you apply.
👉 Get Pre-Qualified Now or Contact Us to speak with a loan advisor.