Christine Lindemer | Groton Real Estate, Lunenburg Real Estate, Westford Real Estate


If you are thinking of buying a home in the near future, there’s one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage. 


What Is A Credit Score?


Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, there’s a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:


Payment history

Debt-to-credit ratio

Length of credit history

New credit accounts opened


The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also don’t want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up. 


What’s A Good Score?


If you’re aiming for the perfect credit score, it’s 850. Most consumers won’t reach that state of perfection. That’s, OK because you don’t have to be perfect to buy a house. If your score is 740 and above, know that you’re in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, you’ll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.    



What If You Lack Credit History?


Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that you’re a responsible person to lend to. 


What If Your Score Needs Help?


It doesn’t mean you’re a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if you’re buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, you’ll be well on your way to securing a mortgage for the home of your dreams.        




Your credit score is one of the most important numbers to your financial picture. You know how important it is to have a high credit score. If you pay your bills on time and keep your debt down, you think that your score will be just fine, but this isn’t always the case. There are a few hidden mistakes that you could be making that are bringing your credit score down. Read on to find out what to avoid when trying to keep your credit score up and maintain it. 


Too Many Credit Inquiries


Beware that every time you apply for a new loan or even just check on what type of interest rate you can get, your credit will be reviewed. You want to avoid too many credit inquiries because a high number will bring your credit score down. Always ask if a lender is pulling a hard inquiry to check your score, don’t allow too many of these credit checks. 


Anything Small Can Make A Big Impact


Was there a mistake on a medical bill that you paid but it says it was unpaid? If you let this go, your credit score could be impacted. Even unreturned library books that have been turned over to collections can negatively affect your score. Stay on top of things because you never know how a small mishap can affect you.


Your Information Is Wrong


You should look at your credit report so that you can see more than just your history. You can see the information that is being reported to check for mistakes. Incorrect information can bring your credit score down. You can call the credit bureau that’s associated with any errors that you see on your credit report. It can be a little bit of a process to correct the mistakes on your credit report, but the time and effort is definitely worth it for your credit score.                       



Not Using your Credit


While using your credit too much is a problem, not making use of your credit at all can be a problem. Responsibly use your credit. Open a credit card and use it to make small purchases. Charge only things that you can afford and pay the balance off each month. This simple use of a card is one of the easiest ways to establish credit.      


It’s important to do what you can to develop and maintain a healthy credit score. Keep all of your avenues covered to be sure that nothing hidden can negatively affect your credit score. 



Did you know that you could drastically improve your credit score in just a year? Or that there are things that you can actively be doing to keep up your good credit score and make it to excellent? Improving your credit score involves improving many pieces of what makes up a credit score. The tips here are twofold. If your score is low and you are looking to greatly improve it, then you must first figure out why. Review the tips below to see if any listed can help you deal with your credit pitfall(s). If you have an average to good score and just want to improve it as much as possible then each of the steps below can give you insight into how to do so. Balances: The amount of revolving credit you have compared to the credit that you are using is a large factor in your credit score. It’s best to keep your balances from all of your credit cards under 30% of your revolving credit. Even if you pay off your credit cards every month, the amount of credit you are utilizing is recorded. In short, keep balances low, but also keep paying them off each month so you do not end up with a balance than can’t be immediately paid off. Credit Inquiries: Hard credit inquiries show up on your report for 2 years, but only affecting your score for around a year. Hard inquiries show that you are looking to use additional credit and too many hard inquiries in a short amount of time can negatively affect your credit score. One or two within a year’s time will not significantly affect your score but as that number gets higher it will. One way around this is to make those couple of inquiries within a 30-day period. FICO will count those inquiries as one since oftentimes multiple inquiries in a short period of time results in one loan— meaning you are not in search of multiple lines of credit/loans. But it’s best to be cognizant of this and strategic in how you view your credit report or apply for loans and credit cards. Payment History/On-Time Payments: If you have struggled with paying your bills on time and have seen a suffering credit score then this then would be a main reason behind your low score. And it’s time to take action and change that. This is one of the main factors in your credit score and therefore significantly impacting your score, either negatively or positively. It’s important to do everything in your power to pay all bills on time. Even being just a couple days late on payments will have affect. Length of Credit History: Length of credit is not necessary something that you can completely control. But it does have an affect on your credit score. As the length of your credit increases, and given that you are responsible with your credit, your score will improve. The most important piece to remember here is to be responsible with your credit. So what are you waiting for? If you haven't already, sign up for a free credit score site or find out if one of your credit card companies offers it. Frequently checking and seeing your score rise will provide you with the gratification you need to keep on track.