One of the most important factors that helps determine whether or not a borrower can qualify for a home loan is their credit score. Even borrowers with a high income can be denied a mortgage for a home they want to buy if their credit is damaged. The good news is that there are ways to boost your credit score, and sometimes you can see a significant increase in your score within a relatively short period of time.

So, if you have your eye on that dazzling MacDonald Highlands estate overlooking the Vegas strip or that luxury abode on the 18th green at Tournament Hills Golf Course, there is still hope even if you have less than perfect credit.

Here are some of the most effective strategies to quickly boost your credit score and get into position to purchase the Las Vegas luxury home you want:

Pay Your Bills on Time

Before we discuss any of the other tips and tricks that will help build your credit score, it is very important to point out that none of them will be very effective if you do not pay your bills on time. Many consumers view late payments as “no big deal”, but they are a very big deal for credit reporting agencies and lenders.

If you want to move into the “very good” or “excellent” credit score range and qualify for the home you have been looking at, you must prioritize timely payments. If you have a hard time remembering your monthly due dates, it is wise to set up autopay on your accounts. This way, you will at least pay the minimum due every month and not get dinged with a late payment on your report.

Correct Inaccuracies on Your Report

Another important part of your credit boosting strategy is to ensure that everything on your credit report is accurate. All Americans are entitled to a free copy of their credit report once per year, and this can be obtained at https://www.annualcreditreport.com/.

Review your report and see if there is any derogatory information that is inaccurate. If you find any, you can dispute this information with the credit reporting agencies. Then it will be up to the creditor to verify that the information is correct.

If you have several negative items on your report that you believe are false and you want to dispute, it is best not to file them all at once. Credit reporting agencies could dismiss your claims as “frivolous” if they believe that you are just blanketly disputing every negative item in hopes that some of them will be removed.

Request a Goodwill Deletion

If you have a mostly positive credit history but there are one or two late payments that are dragging your score down, it is a good idea to write a letter to the creditor requesting a goodwill deletion of the late payment from your report. Just getting rid of a couple of late payments can significantly boost your credit score.

It helps if you have a compelling reason why you were late, perhaps a family illness or another type of emergency. This puts a human touch on the letter and makes it more likely that your request will be accepted.

Negotiate with Collection Accounts

Maybe you went through a rough period in your life, and you accumulated several accounts that ended up going to collection. At this point, some or all of them might be in “charged off” status. You may be able to negotiate with these creditors to settle the debt for a portion of what you owe. If you go this route, however, be sure to obtain a commitment from them that they will remove the account from your credit report as soon as you pay whatever is agreed upon.

Lower Your Credit Utilization

If you have a good income but you are in the habit of keeping high balances on your credit cards, lowering your credit utilization is an easy way to boost your score. To achieve a “very good” or “excellent” score, keep your credit card balances at or below 30% of your overall credit limit. The lower your balances, the better your score will be; and ideally, it is best to pay off your balances in full every month.

Request a Credit Line Increase

One way to keep your credit utilization under 30% is by requesting a credit line increase on the accounts you have. If the account is in good standing and your income is high enough, there is a good chance that your request will be granted.

Become an Authorized User

Another way to lower your credit utilization is to become an authorized user on someone else’s account who has good credit. The most common scenario here is for a spouse to be added as an authorized user. This way, the account will be reported on the credit files of both spouses, and each of them will benefit from the available credit.

Apply for New Credit Accounts Sparingly

This might sound somewhat contradictory given that one of your goals should be to obtain a lot of available credit to help keep your credit utilization low, but you also have to be careful about applying for too many credit accounts within a short period of time. Hard inquiries on your credit report will temporarily lower your score, so spread new credit applications out over several weeks or longer to minimize the negative effects of these inquiries.

Diversify Your Credit Usage

Around 10% of your credit score calculation is based on the diversity of your credit portfolio. For example, you may have an auto loan, student loans, and credit cards. To make your credit more diversified, you might want to take out an installment loan. And of course, once you take out a mortgage on your Las Vegas luxury home, this will be another positive addition to your credit mix.

Use a Credit Boost Service

There is a good chance that you are not getting credit for all of the regular monthly bills that you pay. For example, you may be paying rent and utilities for your residence, and you may also have internet, mobile phone service and streaming subscriptions such as Netflix and Hulu.

By using a credit boost service such as Experian Boost, you can have the on-time payments for most of your monthly obligations recorded. To get credit for the rent you pay, you will need to use a service like Rent Reporters.

Work with a Reputable Luxury Homes Realtor in Las Vegas

Building a good credit score is one of the most important steps in your journey to purchasing a home. For skilled guidance on boosting your credit and other effective strategies to get you into your dream home, contact Ryan Knoch of the Knoch Group. Ryan is one of the most experienced luxury home real estate brokers in Las Vegas, and he and his team will work closely with you during each step of the process. Call or message Ryan today to get started.

Ryan Knoch is a Las Vegas real estate broker and member of Las Vegas REALTORS® and National Association of REALTORS®. He provides skilled guidance on the purchase and sale of Las Vegas homes and is a resource for all other real estate matters. To schedule a consultation, call Ryan Knoch today at (702) 303-7946 or email him at ryan@theknochgroupre.com.