Credit Score Hacks to Get a Better Interest Rate on Your Home Loan

By Allen Deaver – Asset Realty | Helping Central Texas Buyers Make Smart Moves

 
When it comes to buying a home, your credit score plays a major role in the interest rate you’ll qualify for. A higher credit score can save you thousands of dollars over the life of your mortgage. Whether you're a first-time homebuyer or planning to upgrade, improving your credit score is one of the smartest financial moves you can make. Here are several proven credit score hacks to help you secure the best possible interest rate.

Check Your Credit Reports for Errors

Before applying for a mortgage, get a free copy of your credit report from all three major bureaus: Experian, Equifax, and TransUnion. Review them closely for mistakes like incorrect balances, outdated accounts, or accounts you don’t recognize. Disputing and correcting these errors can give your score a quick boost.

 
Pay Down Credit Card Balances

One of the biggest factors affecting your credit score is your credit utilization ratio—how much of your available credit you're using. Try to keep this ratio below 30%, and ideally under 10%. Paying down credit cards (especially those with high balances) can significantly increase your score in a short time.

 
Avoid Opening New Credit Accounts

Each time you apply for new credit, a hard inquiry hits your report, which can slightly lower your score. More importantly, opening new accounts can reduce the average age of your credit history. If you're planning to buy a home soon, avoid applying for new credit cards, car loans, or other accounts until after your mortgage is approved.

 
Become an Authorized User

Ask a trusted family member or friend with excellent credit if they’ll add you as an authorized user on a credit card. This can help build your credit history and boost your score—especially if they have a long history of on-time payments and low credit utilization.

 
Set Up Automatic Payments

Late payments can tank your credit score. Setting up automatic payments for your credit cards, loans, and other bills ensures you never miss a due date. On-time payments make up 35% of your credit score, so consistency is key.

 
Ask for a Credit Line Increase

If you have a good payment history with your credit card company, consider requesting a credit limit increase. This improves your credit utilization ratio without taking on more debt. Just be careful not to use the new limit as an excuse to spend more!

 
Keep Old Accounts Open

Length of credit history matters. Even if you’re not using older credit cards, keep them open (as long as there’s no annual fee). Closing old accounts can shorten your credit history and reduce your score.

 
Final Thoughts from Allen Deaver of Asset Realty

Improving your credit score doesn’t have to take years. With the right strategy and a little discipline, you can raise your score enough to qualify for a lower mortgage interest rate and potentially save thousands. If you're ready to explore your home buying options, I’m here to help guide you every step of the way.

📞 Contact Allen Deaver at Asset Realty

Your trusted real estate expert in Central Texas
Helping home buyers win with smart strategies and local insight