Need to raise credit score 35 points in two months
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I’m trying to get qualified to buy a home two months from now, and the mortgage broker told me that I need to raise my credit score by 35 points in order to qualify. What are my options? Will getting a new credit card help?
Your options are very limited
The only way do raise your score in such a short time is to reduce your credit card utilization, in case that it is high. Carrying credit card balances of more than 30% hurts your score. Paying off your credit card balance and lowering your utilization below the 30% mark will give your score an immediate boost. Whether it’s worth 35 points depends on how high your utilization was before.
Other than this – noting you can do. Paying off derogatory items won’t help your score at all. However, you stand no chance of getting approved for a mortgage with open derogatory items.
Paying off installment loans might actually lower your score because the account will now be closed and will not count as much in your score as an open active account. However, it will improve your overall debt-to-income ratio, which may prove to be more important than your actual credit score when it comes to mortgage lending decision.
Opening a new account is a very bad idea. It might actually lower your score for the short term. Do not open new accounts at least 6 months prior to applying for a mortgage.
Other than this, only a steady stream of timely payments can raise your credit score, but that takes time. For a 35 point raise, you’re looking at least 24 months.
Good luck.
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