Your credit worthiness is based on your credit history, which is extremely important for being approved for a home loan in Tomball, Texas. Your credit score is a number calculated based on your credit worthiness that lenders use to evaluate whether you are likely to repay your debts. If you know your credit score needs improvement, here are some steps you can take to repair it.

First, use your credit reports as tools to figure out where to make improvements. You are entitled to a free credit report per year from each of the three credit reporting agencies: Equifax, Transunion, and Experion. You can also get free reports if you were recently denied credit.

Review your credit reports, looking for errors. Find out if you have unpaid or overdue bills. Calculate how much debt you have. Dispute errors with the credit bureau(s) or business(es) who reported them. If successful, errors will be removed from your report. If unsuccessful, write a statement for your report explaining the circumstances.

Your payment history is approximately 35% of your credit score. So, focus first on paying off any overdue bills under 180 days old. Then, pay off overdue bills over 180 days old, which have already damaged your credit. All bills on your credit history should show as “current” or “paid.”

Your credit utilization (total debt to total credit limit) is approximately 30% of your credit score. The lower your debt is compared to your credit limit, the better. Credit cards strongly affect your credit. Pay the most on cards with the highest balances compared to the credit limits. Or, it may make sense to pay the most on cards with the highest interest rates first. Keep your credit card balances at less than 30% of the credit limit, although below 10% is ideal.

Carefully consider getting new credit. Apply for credit as few times as possible because each credit inquiry lowers your credit score. In general, apply for a major credit card first. If unsuccessful, apply for a store credit card. If necessary, apply for a secured credit card, which requires a security deposit. By paying all your bills on time and not using the full credit available to you, you help reestablish good credit.