When talking about your credit score, it may seem overwhelming when trying to boost it when your credit score has taken a hit. Most home buyers today do not know of a report that is exists to help them through their lender that will allow them to see a significant increase in their credit score based on action taken on their part that can boost their score.


Credit action reports are available at minimal cost through such main credit repositories such as; TransUnion, Equifax, Experion, etc.



In the past, it was a loan officer’s best interest (at which point they would make an estimated decision) as to which credit action would produce a credit score increase and then if it did, the amount of the increase was still not precise. These are the usual proposed actions that are mostly taken:


1.    Pay the remaining balance on a credit card or a consistent account to an amount lower than 25% of the limit.

2.    Pay off a small medical collection for $88 and have the paid off account reported as paid.

3.    Remove a late payment from the past 12 months of history on a current automobile loan.


Any of the above 3 credit actions will have a better chance at some sort of positive credit score that will increase your credit score.


However, many lenders who offer FHA loans require a 640 minimum credit score as the borrower’s middle score.  In fact, FHA now requires a minimum score of 620 and by now, all FHA lenders are wanting this as well.



Tip: Most applications include getting better rates on conventional loans for both refinancing and purchasing; as well as increasing your standing with insurance companies that use credit scores as part of their evaluating risk and premium levels.


Put it on your list to talk to your local lender and request a “credit action report”.  Make the improvements now before you need them, it could save you both time and money.