The health of your credit profile is one of the biggest levers you can pull to get the best possible mortgage terms for the perfect Asheville bungalow or that mountain-view condo a little farther west. Below, we walk through practical steps we share with neighbors every week as Asheville mortgage lenders.
None of these tips guarantee a specific credit score boost (that part is up to the credit bureaus), but each one can help you present a stronger, more complete financial picture when it’s time to apply.
1. Review Credit Reports
Think of your credit report as the owner’s manual for your financial life. You can download free copies of your credit report once a year from the three major credit bureaus, Equifax, Experian, and TransUnion, at AnnualCreditReport.com. Block out an hour, pour a cup of coffee, and scroll line by line:
- Look for duplicate accounts or unfamiliar inquiries. A store card you never opened or an auto loan that appears twice can drag down your score.
- Verify payment histories and balances. Mistakes happen—an on-time payment might be logged late, or a paid-off student loan could still show a balance.
If you spot an error, follow the bureau’s dispute process right away. A concise letter, a copy of the statement proving the mistake, and a little patience usually clear things up in 30-45 days.
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2. Pay Every Bill on Time
A FICO® score is a three-digit number (typically ranging from 300 to 850) that summarizes your credit risk based on the data in your credit reports. Lenders use it as a quick gauge of how reliably you’ve managed debts in the past and, by extension, how likely you are to repay new credit on time.
Payment history accounts for roughly 35 percent of a FICO® score, which means late payments hurt more than borrowing modestly ever will. A single missed due date can linger on your report for up to seven years.
Actionable tip: Set up automatic minimum-payment drafts for all revolving credit, then schedule a calendar reminder to pay any remaining balance before the statement closes. Even if cash is tight one month, covering that minimum on time protects your long-term score.
3. Reduce Credit Utilization
Credit utilization reflects how much of your available revolving credit you’re using, and makes up about 30% of your credit score. Ideally, usage should hover below 30%, but for an extra cushion, many buyers target the 10-15% range if possible. Keeping your utilization lower shows lenders you’re using credit responsibly without stretching your limits, which signals lower risk and stronger capacity to handle new debt.
Simple ways to lower utilization without major lifestyle changes:
- Make mid-cycle payments (pay twice a month) to keep the reported balance on your credit cards lower.
- Ask your credit card company for a modest limit increase. A higher limit automatically lowers utilization—just be sure to resist the temptation to spend more.
4. But Avoid New Credit Applications
A hard credit inquiry occurs when a lender reviews your complete credit report to evaluate a new credit application, such as a credit card or auto loan. Each new credit application triggers a hard inquiry and shortens your average account age—two factors that can ding your FICO® score for up to 12 months.
Avoiding new applications while you’re preparing for a mortgage helps preserve the strongest possible score for loan approval.
5. Settle Outstanding Debts
Outstanding delinquencies are roadblocks on the path to homeownership. Start with the smallest balance or the most recent delinquency, as both tend to yield the quickest credit score gains once resolved. If full payment isn’t possible immediately, consider setting up a payment plan and requesting a “pay for delete” agreement where appropriate (more info on this in #7).
“I am a younger first-time home buyer and Zachary made the home mortgage process very easy and stress-free for me. I received a very competitive interest rate considering my age and younger credit history during a time of rising interest rates. Zack and Aaron were very communicative and helped me feel confident in the process. They are calm, trustworthy people you can trust to quickly answer any questions you will have. Overall, securing the mortgage and obtaining the appraisal was very easy, and I am very grateful for Zack’s help throughout the process. Since the home buying process was as stress-free as possible, I am sure I will be using GoPrime again in a few years if I want to purchase another home. ”
—Caitlin, 5-Star Google Review
6. Keep Your Old Accounts Active
Lenders like to see a long, healthy track record, and the age of your credit history makes up about 15% of your FICO® score. Closing an older card not only erases that history but can also shrink your total available credit, suddenly spiking your utilization ratio and dinging your score.
A smarter move is to keep seasoned accounts open and in good standing: put a small recurring charge like a streaming subscription on the card, set up autopay in full each month, and let that quiet activity preserve (and even strengthen) your credit profile.
If an old card carries a high annual fee, call the issuer to ask about downgrading to a no-fee version rather than canceling outright; you retain the credit history and limit without the extra cost to help keep your mortgage-ready score intact.
7. Consider Credit Counseling
If credit challenges feel overwhelming—multiple past-due accounts, collection notices, high balances across the board, or simply not knowing where to begin—professional counseling can help you build a concrete action plan. A reputable counselor will:
- Review your full credit profile, not just your score, to spot errors and identify score-building opportunities.
- Outline step-by-step strategies that sequence disputes, pay-downs, and new-credit strategies around your projected home-buying timeline.
- Coach you on maintaining healthy credit habits long after you’ve moved into your new home.
“There is some strategy when resolving old debts. Settling for less than what’s owed is totally fine (& recommended), but you want to make sure that you can resolve it in one payment, and not get into a payment plan. If you get into a payment plan and default again, you’ve restarted the clock to be sued for that debt. Collections should never be paid without an agreement to delete, and definitely never for the full amount.”
—Dale Marco, Founder of Best CreditRX
We frequently refer clients to Dale Marco at Best CreditRX for credit counseling for trusted credit-restoration resources that are tailored to your unique case and accelerate your progress.
Let’s Turn Your Credit Wins Into House Keys
Improving your credit is less about quick fixes and more about consistent, intentional habits. When you’re confident in the foundation you’ve built, partnering with a solution-oriented mortgage planner in Asheville (like our team at GoPrime!) becomes a smoother, more empowering experience so you can focus on finding a place that truly feels like home.
Have questions about how your current credit profile might affect your home-buying journey? Call, click, or come in, or schedule a virtual meeting to learn how we can help. We’re located in Western North Carolina at 862 Haywood Rd, Asheville, NC 28806, or give us a call at (828) 348‑1907.
