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How to Increase Your Credit Score

Building your credit score is an important part of managing your financial health. A good credit score can help you get approved for loans and credit cards with better terms and lower interest rates. Here are some tips on how to build your credit score:

  1. Pay your bills on time: Payment history is the most important factor in determining your credit score. Late payments can have a negative impact on your score. Make sure to pay your bills on time every month to keep your score in good standing.

    According to the New York Times, “Payment history is the biggest factor in credit scores, accounting for 35 percent of a FICO score, the most commonly used score by lenders.”

  2. Keep your credit utilization low: Your credit utilization is the amount of credit you use compared to the amount of credit you have available. It’s recommended to keep your credit utilization under 30% of your available credit.

    The Washington Post reports, “Credit utilization — or the percentage of your available credit you’re using — accounts for about 30 percent of your score.”

  3. Use a variety of credit types: Having a mix of credit types, such as credit cards, auto loans, and mortgages, can show lenders that you’re able to handle different types of credit.

    According to the New York Times, “Credit mix makes up 10 percent of a FICO score.”

  4. Don’t apply for too much credit at once: Applying for too many credit accounts at once can have a negative impact on your score. It’s important to only apply for credit when you need it.

    The Washington Post warns, “Avoid applying for too much credit too quickly, because too many hard inquiries — meaning inquiries that stem from you applying for credit — can bring down your score.”

  5. Check your credit report regularly: Checking your credit report for errors can help you identify and correct any mistakes that may be negatively impacting your score.

    The New York Times recommends, “Get your free credit reports at AnnualCreditReport.com and review them for errors.”

But…. What if I have a low FICO? Am I doomed?

It’s important to remember that having a low FICO score does not define your financial future. While it may feel discouraging to have a low score, the good news is that it’s never too late to start working towards improving your credit.

According to a recent report by the Consumer Financial Protection Bureau, “Consumers with low credit scores can significantly improve their credit scores by making on-time payments, keeping balances low on credit cards, and limiting new credit applications.”

It’s also important to note that building credit is a process that takes time and consistency. With dedication and effort, you can gradually improve your score and achieve your financial goals.

One of the best ways to get started is to create a budget and prioritize paying your bills on time. Even if your score is low now, consistent on-time payments will eventually have a positive impact on your credit score over time.

Additionally, consider getting a secured credit card or a credit-builder loan, both of which can help you establish credit and improve your score.

Ultimately, improving your credit score is about making positive changes in your financial habits and staying committed to your goals. So don’t be discouraged if your score is low now, know that you can always take steps to improve it and reach your financial dreams. Remember, building good credit is a journey, not a destination.

Can Home Mortgage Alliance Corporation Help Me Increase My FICO?


Home Mortgage Alliance Corporation (HMAC) offers a Financial Literacy Program to help individuals learn about credit scores, budgeting, and other important financial topics.

HMAC’s program includes educational resources such as articles, videos, and courses, as well as personalized coaching to help individuals understand their credit reports and develop strategies for improving their credit scores.

The program also offers guidance on how to manage debt, build savings, and prepare for homeownership, among other topics. With a focus on empowering individuals to take control of their financial futures, HMAC’s Financial Literacy Program is a valuable resource for anyone looking to improve their credit score and achieve their financial goals.

By leveraging resources like HMAC’s Financial Literacy Program, along with reputable news sources and other educational resources, individuals can take concrete steps towards improving their credit score and building a brighter financial future.

Learn More by visiting www.homemac.com


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