5 Ways to Protect and Increase Your Credit Score


Having a high credit score enables you to not only secure a loan, but to obtain a lower interest rate on it, saving potentially thousands over time. The following are five simple ways to protect and increase your credit score:

1. Pay your creditors on time. 

A significant portion of your credit score is weighted on your payment history.  Mortgage credit history is weighted the highest due to the size of the loan.

2. Keep credit card balances below 50% of the credit card limit. 

As an example, if your credit card limit is $1000 your credit card balance will be below $500 or less.  The lower the balances the better.

3. Limit the amount of charge cards and loans.    

Excessive open credit cards with balances and large amounts of installment debt (ie auto loans) will reduce or limit your credit score from increasing.

4. Limit the amount of credit inquiries made if applying for a loan. 

Every time you apply for a loan, the bank or lender will complete a credit inquiry. Too many credit inquiries in a short period of time may reduce your credit score.

 5. Avoid co-signing for loans.

Co-signing for a loan means you take on an added risk that is unwanted by a lender.  This is due to the fact that the nature of co-signing a loan is because the person who has applied for a loan does not qualify and needs additional support from a co-signer.  When you co-sign for a loan you become equally responsible for the loan repayment and your credit score will be impacted as mentioned in above #1-4. 


Maintaining your credit score is similar to having children. Your credit score will be with you until you die (so will your children) and an effort must be made to make sure your credit score is protected and conditioned.  Neglecting your credit can cost you thousands of dollars when and if you decide to obtain a mortgage loan.

For more information on increasing your credit score to buy or refinance a home in Hawai'i, please contact Solid Rock Home Loans at (808) 255-7498 or by e-mail at ed@urockloans.com.