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  • Writer's pictureMeghan Snead

When the lender says "work on your credit"










Nothing deflates a buyer's excitement quite like hearing those four words:


"Work on your credit." 


You already know, credit is a BIG deal when buying a home. It's an indicator to lenders about how likely you are to make timely payments on your mortgage loan.

So, if you’ve heard these words or fear you might, don't stress! Here are a few things to focus on that will have a direct impact:



Keep credit card balances low: The pros say credit utilization should not exceed 30% of your available credit line. Aim to maintain low balances on your cards by paying down your balance ahead of your statement closing date.



Use credit wisely: Avoid opening multiple new credit accounts within a short period. It can indicate financial stress and may lower your score.



Keep old accounts open: Closing old accounts can reduce your overall credit history, which may negatively impact your score. Keep old accounts open if they are in good standing.



Check your credit report: Don't let errors derail your progress. Put eyes on your credit report every few months and dispute inaccuracies. Most credit cards let you perform a free credit check that's not considered a hard inquiry.



Want to take it a step further? Grab a copy of my Free Home Buying Steps— a tool my that I share with my buyer clients to ensure you are working hard to reach your goals! DM me, and I’ll send it over.




Meghan Snead KW Bartlesville



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