How to Improve Your Credit Score in 2025.

Having a good credit score can benefit you in numerous ways when it comes to real estate opportunities. Not only is it crucial in being able to secure a mortgage for a home, but it can also make you more favorable as a tenant when looking to rent a house or apartment. So what can you do to help improve and optimize your credit score throughout this year? Let me offer a few suggestions!

Here are the five areas that affect your credit score, and what you can do to improve each area:

1. Payment history. Your payment history has the most impact on the health of your overall credit score. The single best way to build your credit is to pay your bills and dues on time, every time. Set up automated payment where possible to help make this happen with minimal effort and set reminders for yourself on the payments that can’t be automated. Consistency is key here!
2. Credit utilization. How much you owe also bears a lot of weight on your overall credit score. Although different experts will offer suggestions on how to calculate what your credit utilization rate should be, I think the most helpful way to think about this is not to charge more than you know you can pay off within the month. Not only does this help to build a strong and healthy credit score, but it will also help you keep a check on your spending and stay out of debt. 
3. Length of credit. When it comes to credit length, the longer the better! The length of your credit is determined by multiple factors, including the age of your oldest account, when past accounts have been closed, and the age of your newest account. This means that you should be careful to not open new accounts too often, as this can have a negative impact on your overall credit score. 
4. New credit. Any application for new credit will affect your credit score, as it will cause a hard inquiry to show on your credit report for up to two years afterwards. The more applications for credit you have on your report, the less appealing you may become to a lender, as it can signify financial instability. 
5. Credit mix. It is best for your credit score to have several different types of credit. For example, having a credit card, a mortgage, and a student loan may be more favorable than only having one of those on their own. Having a history of taking out loans strategically, and then regularly making payments on them adds to your credibility in financial management skills.

I find that almost everything is easier to understand and implement when broken down into concise categories. I hope that is the purpose this post served for you today, making you even more confident and ready to build a better credit score in 2025! As always, please don’t hesitate to strike up a conversation if you have any questions or would like to talk further about your real estate goals for this coming year. It is my pleasure to open new doors with you, wherever you find yourself on that journey.