Tips for Raising Credit Score

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As you’re applying for mortgages for your new home, credit score is one of the most vital factors on your mind. Not only does credit score often make the final difference between whether you’re approved or denied for a loan, it’s typically one of the primary factors your mortgage broker uses when ironing out the specific monetary details of an approved loan.

We’re the premier mortgage company in Phoenix at VIP Mortgage, and we know firsthand just how important credit score can be. What are a few things you can do to help boost your score and put you in a better position come loan time?

Stay Organized

One of the quickest ways to torpedo your credit score is missing payments or exceeding spending limits, and the simplest strategy to avoiding these outcomes is staying on top of your finances. Document your due dates, and set reminders for yourself if necessary.

With online banking, this is easier than ever. You can schedule payments or even set up automatic, recurring payments each month. Don’t let the little details damage your finances.

Easy Debt

If possible, try to find small ways to incur brief debt, then pay it off quickly and in much larger amounts than the minimum. This is a great way to give your credit score a temporary boost – though be absolutely sure you can handle the new amount of debt and it won’t create further issues with your score.

Track Spending

Track your spending, and know exactly how far your lines of credit extend within this realm. It’s often recommended that people with a high credit score in mind follow the “20/10” rule: Don’t let credit debt ever become higher than 20 percent of post-tax income yearly, and never allow more than 10 percent of your monthly income to be tied down to credit card payments. The more breathing room you can leave yourself here, the better.


Another quick way to ruin your credit score is an emergency taking place without any funds to cover it. You might be forced to take out extra lines of credit or exceed your spending limits, and it’s easy for payments to go unpaid. Try to keep a budget of 10 to 15 percent of your available credit available for these situations, however unlikely they might be.

At VIP Mortgage, we’re here to answer any questions you have about credit score or any part of the mortgage process. Speak with one of our expert brokers today.

*The views and opinions expressed are my own and do not necessarily represent the official policy or position of VIP Mortgage, Inc.

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