How to Fix Your Credit Score in Los Angeles

If you’re gearing up to buy a house in Los Angeles, one of the most important things you can do to prepare is to check your credit score. That number is going to help determine how much interest you’ll pay on your mortgage – or whether you’ll qualify at all. By checking early, you’ll have more time to repair your score and save yourself money in the long run.

Know what credit score you need

While there is no hard and fast rule about what the minimum credit score is to qualify for a mortgage, higher is always better. As the market changes, so do minimum requirements for lenders. It also depends on the type of loan you are applying for. FHA loans, for example, have a minimum requirement of 580, while conventional loans backed by Freddie Mac or Fannie Mae require a score of at least 620.

Fix mistakes on your credit report

Take a good look at your credit report. If there are any mistakes or inaccuracies on it, you’ll need time to fix them. As many as 25% of consumers have errors on their reports – don’t be part of that statistic. If you do find a mistake file a claim on a credit bureau website. Keep copies of the documents you file. You should expect a response in one to two months.

Pay on time

Late payments not only affect interest rates on credit cards, they can also lower your credit score. If you’re planning to buy a house, make sure you keep current on all your bills.

Pay down balances

One of the best ways to improve your credit score is to keep your balance below 50% of your available credit. If possible, make more than the minimum payments on your debts over the coming months and work to pay down your balance. As stated at, a history of only paying the minimum payment each month does not inspire confidence in lenders, so pay more than the minimum, even if it’s just a small amount.

Don’t close paid off accounts

While experts disagree on this tactic, it’s probably a good idea to keep that paid off credit card open, at least until you secure your mortgage. Closing the account will affect the ratio of your existing balance and available credit. Just don’t be tempted to suddenly use all that available credit to make a big purchase.

Don’t open a new line of credit

If you’re planning to buy a home in Los Angeles, now is not the time to incur other debt. Do not take out a car loan or open any new credit cards. It’s also smart to wait on any big purchases on existing cards, like a vacation. Sudden big changes to your credit history can be potential red flags to lenders, so avoid them if at all possible.

Give yourself plenty of time

Before you even begin to look for a home in earnest, take time to get your financial life in order first. It can take time to remove inaccuracies from your report and repair a low credit score. When it finally comes time to buy a home in Los Angeles, you’ll be glad you did.

Brought to you by Jerry & Rachel Hsieh


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How to Fix Your Credit Score in Los Angeles

Jerry and Rachel Hsieh

In the past 13 years in real estate and at the age of 38, Jerry has had the good fortune of experiencing all of this at some point and has established himself as one of the premiere AWARD WINNING Realtors in the industry. Jerry began his career at Coldwell Banker with incredible heat: He was named the top “rookie” agent his inaugural year with over $4.5 million dollars listed and/or sold (Most 1st year agents don’t complete any transactions). Since then, his real estate career has been non-stop and he has quickly become the realtor that other young realtors talks about. In 2010, in a down market, Jerry and Rachel sold 24 homes within a 1 mile radius of the Pico/Fairfax area. They have sold over 50 homes in the Picfair Area in the past 4 years, more than any other realtor. From 2011 until now, Jerry and Rachel’s Team has grown, as has Jerry’s experience and expertise.