Your credit score is a lever: the higher it is, the better your mortgage terms. Here’s how New Jersey buyers can strengthen their score before they shop.
1) Pay On Time—Every Time.
Payment history is the biggest factor. Automate due dates and set reminders. Even one late payment can sting.
2) Lower Your Credit Utilization.
Keep revolving balances under 30% of the limit (under 10% is even better). If possible, make a mid-cycle payment so the statement balance reports lower.
3) Don’t Open New Accounts (for now).
Each hard inquiry can temporarily dip your score. Hold off on new cards, furniture financing, or auto loans until after closing.
4) Fix Errors on Your Credit Reports.
Pull reports from all three bureaus (free annually). Dispute inaccuracies like old collections or misreported limits—clean data boosts scores.
5) Diversify Carefully.
A healthy mix of installment (auto/student/mortgage) and revolving credit can help—but don’t manufacture accounts just for mix.
6) Keep Old Accounts Open.
Length of credit history matters. If there’s no annual fee and it’s in good standing, consider keeping long-standing cards active.
Score Targets: Many conventional loans start around 620+, with better pricing at 680/700/740+. Raising your score can save thousands in interest over the life of your loan—well worth a short preparation phase.
NJ Pro Tip: Speak with a local lender early. They’ll run scenarios—“If we drop utilization by X%, your rate could improve by Y”—so you know which actions move the needle fastest.
