Top 10 Ways to Improve Your Credit Score Before Buying a Home in Portland

If you are getting ready to buy a home in Portland, one of the most important steps is focusing on your credit score. Your score affects both whether you qualify for a loan and what kind of interest rate you will get. Even a small bump in your score can mean thousands saved over the life of a mortgage.

The good news is you do not need a perfect score to buy a home here. Many Portland buyers qualify with scores in the low 600s. FHA loans allow you to buy with as little as 580, and some local programs require 620 to 640. Higher scores still unlock the best rates, but there are options even if you are still building credit.

Here are the top ten ways to improve your score, ranked by impact:

1. Pay Your Bills On Time (Highest Impact: ~35%)

On-time payments are the single biggest factor in your score. One missed payment can drop your score quickly and stay on your report for years. Tip: Set up automatic payments for credit cards, loans, and utilities. If you are behind, catch up as soon as possible. FHA loans will often still consider you with lower scores if you show recent on-time payments.

2. Keep Credit Utilization Low (High Impact: ~30%)

Your utilization is the amount of credit you use compared to what is available. Keeping it under 30 percent is good, under 10 percent is even better. Tip: Pay down cards with the highest balances first. Making payments throughout the month can also help. Lower utilization is especially helpful if you are aiming for a conventional loan in the 620 to 640 range.

3. Do Not Close Old Credit Accounts (Moderate Impact: ~15%)

The age of your accounts matters. Closing older cards shortens your history and can increase utilization. Tip: Keep older accounts open and make a small purchase now and then to keep them active.

4. Build a Mix of Credit (Moderate Impact: ~10%)

Lenders like to see you can handle different types of credit. That means a combination of credit cards and loans. Tip: If you only have revolving accounts like credit cards, adding an installment loan may help. But do not take on unnecessary debt just for variety.

5. Limit New Credit Applications (Moderate Impact: ~10%)

Each new application can knock your score down a few points. Several new accounts in a short time can worry lenders. Tip: Avoid new loans, credit cards, or financing furniture and cars while preparing to buy. Programs like Oregon Bond and Portland’s Down Payment Assistance Loan (DPAL) look closely at your credit stability.

6. Check Your Credit Reports for Mistakes (Potentially High Impact)

Errors are common and can drag your score down unfairly. Correcting them can give you a quick boost. Tip: Pull your free reports from AnnualCreditReport.com. If you find errors, dispute them right away with the bureau and the creditor.

7. Become an Authorized User (Potentially High Impact)

If a trusted friend or family member has strong credit, being added as an authorized user can help. Tip: This works best if they have low balances and a long, positive history. Their habits will show on your report.

8. Use a Secured Credit Card (Good for Limited or Damaged Credit)

Secured cards are a good tool for building or rebuilding credit. You put down a deposit that becomes your limit, then use it like a regular card. Tip: Choose one that reports to all three bureaus and pay it off in full each month. This strategy is especially helpful for first-time buyers using local programs that require at least a 620.

9. Get Credit for Rent and Utility Payments (Helpful for Thin Credit Files)

Most rent and utility payments do not show up unless they are late. Adding them can fill out your credit history. Tip: Look into Experian Boost, Rent Reporters, or Level Credit. Some Portland landlords also report rent directly, which can give your score an extra lift.

10. Keep Unused Accounts Open (Minor Impact)

Closing accounts reduces your available credit and can hurt your utilization ratio. Tip: Keep unused cards open and active with an occasional small purchase.

Local Connection

In Portland, most buyers with scores of 620 or higher have access to conventional loans. FHA loans go down to 580, and VA and USDA loans are flexible with credit as well. Local programs like the Oregon Bond Residential Loan and Portland Housing Bureau’s DPAL can help with down payment and closing costs, but many require a minimum score of 620 to 640. That makes these credit tips especially powerful if you want to qualify for the widest range of assistance.

Improving your credit score takes steady effort, but it pays off. The earlier you start, the more options you will have when you are ready to buy your home.