Mortgage lenders are taking less risks during this time of COVID-19. Most of them have raised their credit score limits to approve applicants for a home loan. Buyers with a credit score as low as 590 could purchase a home last month, but that is not possible now.

If you are hoping to buy in this next year, but your credit score needs a bump. Here are some ways to improve your score:

Believe it or not, your credit score rises when you do not use your credit cards. It is okay to have them, just pay down the balance and you will see a significant score increase with our recommended 10% or less as the balance, the lower the better. Your retail cards (store credit cards) balance matters too, so be sure to keep them at 10% or below. In addition, after you have paid down your debt you will see an increase in your credit score.

If you have any personal loans or vehicle loans, make your payments on time every month. Missing even one payment will drastically lower your credit score, we have seen an excess of up to 115 points!

Rent payments are just as important. A mortgage company does not want to see any late rent payments. If you have ever broken a lease, or not paid your balance on a home that you formerly lived in, need to make sure the information reported to the credit bureaus is accurate.

If you have a steady job and you are spending less during the pandemic, it is a great time to start repairing your financial situation. One way is by addressing your personal credit. Credit Services of America has many strategies to help you overcome credit and debt issues. 

Finally, just how can you boost your credit score besides paying your bills down?  A tradeline helps you improve your credit score, because you reap all the benefits a good payment history that enable a credit score. Without a good credit score, you will have limited access and services of your credit card, loan plan, and a higher interest rate on any loan including mortgages. In short, you will have to end up paying more money than someone with better credit for the same transaction.