Having a good understanding of your credit will help you make a more informed decision when it comes time to purchasing a home. Many people struggle with knowing exactly what their credit score means, and how they can work to improve it. We have answered some of the most important questions to help you have a better understanding of what your credit score means.


What is on a credit report?

Your credit report is a record of your responsible payment of debts. It shows your credit history from a number of sources including banks, credit card companies, collection agencies, and governments. This document is prepared by a credit bureau and helps determine a loan applicant’s credit worthiness.


What is my credit score?

Your credit score is a numerical expression that represents the risk a lender takes when you borrow money. The higher your score, the better. A standard credit score can range between 300 and 850.


How can I improve my credit score?

There are many ways to improve a credit score. Some that you can do immediately, and some that take time. Some key ways to improve it are:

  • Pay bills on time
  • Keep credit card balances low between payments
  • Apply and open credit accounts only as needed
  • Pay off debt


To establish and maintain a good credit score, it’s important to first have an understanding of what the numbers means and what the report says about you as a potential borrower. As always, a VA Loan Specialist can help you analyze your credit and suggest a plan to put you in the best financial standing possible before purchasing a home.