Building Credit for Your Dream Home: 5 Clever Tips (Minus the Credit Cards!)

Learn how to boost your credit to get a better rate as a homebuyer --without applying for a new credit card!
Jun 07, 2023

So, you're on the hunt for your dream home, but your credit score is in need of a little TLC. Building your credit doesn't always require opening credit cards. Here are some nifty tricks to amp up your credit score without applying for new plastic.

  1. Rent Reporting: Who knew that paying your rent on time could actually help you build credit? Rent reporting services work alongside work your landlord to report your timely rental payments to credit bureaus. This way, your responsible renting habits have the chance to shine on your credit report. 

  2. Experian Boost: By linking your utility, cell phone, internet, and even eligible streaming service accounts to Experian Boost, your payment history for these bills can be included in your credit file. Finally, those pesky monthly bills can work in your favor! 

  3. Authorized User Status: Have a friend or family member with impeccable credit? Ask if they'll add you as an authorized user to their credit card. As an authorized user, you'll inherit their credit history, making it rain positivity on your own credit report. Just be sure your creditworthy benefactor continues to handle their finances responsibly; you don't want to be caught in a credit storm.

  4. Secured Credit Card: While it's not entirely avoiding a credit card, a secured credit card can be a good option for building credit. A secured credit card is like a regular credit card, except you'll need to make a deposit as collateral, which then becomes your credit limit. By using this card judiciously and making timely payments, you're on your way to establishing credit history without the temptation of going on a reckless spending spree. 

With these clever credit-boosting methods, you can set sail on your homebuying journey armed with a solid credit score. Remember, building credit takes time and consistency. Be patient, pay your bills on time, and keep your credit utilization low. Before you know it, you'll be unlocking the door to your new home with confidence.

Did you find this article helpful? Please share it!

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.