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How to Build Credit from Scratch (or Improve It!)

  • Writer: Rachel Harper
    Rachel Harper
  • Feb 19
  • 3 min read


Your Credit Score Could Make or Break Your Home Buying Plans

If you’re a first-time homebuyer, you’ve probably heard that credit is everything when it comes to getting a mortgage. But what if you have low credit—or no credit at all?


Don’t worry—you’re not alone, and we’re here to help.


In So You Wanna Buy a Home? Episode 2, Aden Harper sits down with Jason Harper, an experienced broker and lender, to figure out exactly how to build credit from scratch—or improve a weak credit score. Whether you’re just starting or trying to fix past mistakes, this episode has actionable steps to get you mortgage-ready.


Why Does Your Credit Score Matter When Buying a Home?

Your credit score isn’t just a number—it’s the key to unlocking:

✔️ Lower interest rates (which could save you thousands!)

✔️ More mortgage options (some loans require higher scores than others)

✔️ Better approval chances (higher scores = less risk for lenders)


Most mortgage lenders look at your FICO score, which ranges from 300 to 850. The higher your score, the better your loan terms will be.


How Credit Scores Are Calculated

If you’ve ever wondered what actually affects your credit score, here’s the breakdown:

📌 35% – Payment History (Pay your bills on time!)

📌 30% – Credit Utilization (Keep your credit card balances low)

📌 15% – Length of Credit History (The longer, the better)

📌 10% – Credit Mix (Different types of accounts help)

📌 10% – New Credit Inquiries (Too many new accounts can hurt)


Bottom Line: The two most important things you can do right now are paying bills on time and keeping your credit card balances below 30% of the limit.


How to Build Credit from Scratch

If you have little to no credit history, here’s how to start:

💳 Get a Secured Credit Card – Put down a deposit and use it like a regular credit card.

👥 Become an Authorized User – Get added to a family member’s credit card to start building history.

🏦 Apply for a Credit-Builder Loan – Small monthly payments help you establish credit AND save money.

📈 Use a Rent or Utility Reporting Service – Some services report your rent and utility payments to credit bureaus.


💡 Pro Tip: Always pay at least the minimum payment on time—late payments stay on your report for up to 7 years!

How to Improve a Bad Credit Score

If your credit isn’t where it needs to be, here’s how to fix it:

🔍 Check Your Credit Report for Errors – Dispute any mistakes (you can check for free at AnnualCreditReport.com).

💰 Pay Down Credit Card Balances – Lower balances = higher credit score.

⏳ Don’t Close Old Accounts – Even if you don’t use them, they help your credit age.

🚫 Limit New Credit Applications – Too many hard inquiries can drop your score.


How long does it take to improve your score? Some changes (like paying down debt) can help in a few months, while bigger improvements may take 6-12 months or longer.


Aden’s Credit Journey: Where He’s Starting

In this episode, Aden takes his first real look at his credit score and realizes it needs work before he can buy a home. With Jason’s help, he’s creating a step-by-step plan to improve it—including getting a secured credit card and paying down small debts.

If you’re in the same situation, now is the time to take action!


🎯 Your Homework from Episode 2:

✅ Check your credit score (Start at AnnualCreditReport.com)

✅ Make a credit plan – Choose one action (secured card, paying down debt, etc.)

✅ Subscribe to the YouTube series so you don’t miss Aden’s progress!


What’s Next? Episode 3: How to Save for a Down Payment

Now that we’ve covered credit, it’s time to tackle the next challenge—saving for a down payment.


In Episode 3, we’ll cover:

✔️ How much you actually need to save (hint: it’s not 20%)

✔️ Ways to save faster (without giving up everything fun)

✔️ Down payment assistance programs (aka free money!)

👉 Subscribe to Follow Aden’s Journey: https://www.youtube.com/@harper_home_co


💬 What’s your biggest credit challenge? Drop a comment below—we’d love to help!


Stay Connected for More Home Buying Tips!

📲 Follow The Harper Home Company:📍 Instagram: https://www.instagram.com/aden_harper_homes/



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