Fixing Low Credit Scores & Building Credit History to Buy a Home
by Allen Deaver – Asset Realty
A strong credit score is one of the most important factors in qualifying for a home loan. But if you’re dealing with a low credit score or limited credit history, don’t worry—there are practical steps you can take to improve your standing and move closer to owning a home in Central Texas.
1. Check Your Credit Report for Errors
Start by requesting a free copy of your credit report. Look for inaccurate accounts, outdated information, or fraudulent activity. Disputing errors can give your score an immediate boost.
2. Make On-Time Payments—Every Time
Payment history is the biggest factor in your credit score. Set reminders or use automatic payments to ensure you never miss due dates. Even a few months of consistent on-time payments can make a noticeable difference.
3. Pay Down Credit Card Balances
High credit utilization—using a large percentage of your available credit—can hurt your score. Aim to keep balances under 30% of your limit, and ideally even lower.
4. Become an Authorized User
If a trusted family member or close friend has strong credit, being added as an authorized user on one of their accounts can quickly help you build positive credit history.
5. Open a Secured Credit Card
For those with very limited or poor credit, a secured card is a great tool. You make a deposit and use the card responsibly to build credit over time.
6. Avoid Opening Too Many Accounts at Once
Multiple credit inquiries can temporarily reduce your score. Focus on slow, steady improvement instead of applying for several accounts at the same time.
7. Consider Credit-Builder Loans
Some banks and credit unions offer credit-builder loans designed specifically to help you establish and improve credit. These small loans are paid back over time, and every on-time payment helps your score.
8. Keep Old Accounts Open
Length of credit history matters. Even if you don’t use an older card often, keeping it open can help improve your credit age and your overall score.
Improving your credit isn’t an overnight process, but with steady habits and smart planning, you can get mortgage-ready and confidently move toward homeownership.
If you're thinking about buying a home and want guidance on improving your credit along the way, give me a call—Allen Deaver with Asset Realty. I’d be happy to help you take the next step toward owning your dream home!
