To improve your credit score before a mortgage, focus on the two factors that matter most: pay every account on time and keep your card balances low. Payment history is about 35% of your FICO score and amounts owed are about 30%, per myFICO. Fix those two and most of the work is done. Here are four habits I give clients.

This is this week’s Monday Minute.

Improve Your Credit Score by Paying On Time

Payment history is the single biggest factor, and one late mark can undo months of progress. Set an automatic minimum payment on every card, even one you don’t use. It can be $25. It just guarantees you’re never late.

I’ve seen a card sit unused, an annual fee hit, the mail go unopened, and that fee turn into a derogatory mark. An auto-payment catches it.

The 70/50/30 Rule

Keep your balances low against your limits. That ratio is your credit utilization, and lower is always better. Get under 70%, then under 50%, then under 30%, and under 10% is best of all.

Spread it out, too. One card at 90% and another at 30% hurts more than the same debt split evenly across both.

How to NEVER Be Late Again

The bureaus only see the balance on your closing statement, not what you pay afterward. So if you’re paying $3,000 down, pay it a couple days before the statement closes. A lower balance gets reported, and your utilization drops on paper.

Sync Your Due Dates to Payday

Call your card companies and ask to move your statement closing date to line up with your paycheck. Pay lands, you make your payments, the statement closes on a low balance. One phone call, and it works every month.

Watch This Week’s Monday Minute

I walk through all four in a quick video. Give it a watch, or send it to someone getting ready to buy.

These are general habits, not a credit repair pitch. Everyone’s report is different, so the right move depends on yours. I spent years as a CPA before I wrote loans, so I’m glad to look at where you stand. See our loan options and give me a call.

Manny Solana, NMLS #291475 | California Home Solution, Inc., NMLS #260091

Frequently Asked Questions

What is the most important factor in my credit score?

Payment history, at about 35% of your FICO score. Paying every account on time is the single most effective thing you can do.

What credit utilization ratio is best for my score?

Stay under 30% of your available credit, and under 10% for the strongest effect. Spreading balances across cards helps more than piling debt on one.

When should I pay my credit card to improve my score?

A few days before your statement closing date. Bureaus report your closing balance, so paying before it closes lowers the utilization that gets reported.

Can I improve my credit score for a mortgage quickly?

Utilization can respond within a billing cycle or two. Payment history takes longer. Starting a few months before you apply gives you the most room.