Episode 8 - How to Fix Ugly Credit
“Even if it takes time, every payment and every step forward brings you closer to stability, freedom, and the home you’ve been dreaming of.” - Nelson Barss
How to Fix Ugly Credit and Start Your Journey to Homeownership in Utah
If you’ve been told your credit score is too low to qualify for a mortgage, or if high interest rates have held you back, this guide is for you. When it comes to credit, there’s always a path forward. With the right strategy and some focused effort, you can rebuild your credit and take confident steps toward owning a home in Utah.
In this article, we’ll break down three levels of credit repair: simple, mid-level, and complex. You’ll also learn practical steps to improve your score and qualify for better mortgage options.
1. Simple Fixes: Quick Ways to Raise Your Score
If your score is in the mid-600s and you’re aiming for the mid-700s, you may only need a few small adjustments. Some borrowers in this range don’t have late payments on their credit reports, but their credit cards are often maxed out.
The biggest issue is usually high utilization. When your credit card balances are close to their limits, lenders see that as a higher risk. Paying down those balances can quickly raise your score.
We like to use a rapid rescore to help clients see fast results. This process updates your credit report within three to five business days. It can lead to better interest rates, lower mortgage insurance premiums, and even help you qualify for a conventional loan instead of FHA, which saves thousands over time.
Quick tips for improving simple credit issues:
Pay credit cards down to about 10 percent of your limit.
Ask creditors for limit increases to improve your utilization ratio.
Keep all accounts current and avoid new debt while rebuilding.
If this sounds like your situation, schedule a consultation. We can analyze your credit and show you exactly how much your score could improve, often by 40 points or more.
2. Mid-Level Credit Repair: Bury the Past with Good Credit
If your score is in the 500s, it may be due to late payments or collections. This can be explained best through the “topsoil analogy.”
“If you have an ugly garden full of weeds, you can’t just pull them. You have to bury them with fresh, healthy topsoil. The same goes for credit.”
Each on-time payment you make acts like a shovel of topsoil covering old late payments and collections. Over time, your credit report becomes stronger and healthier.
How to start rebuilding:
Keep all current accounts paid on time.
Open three to four new secured accounts or small loans if you don’t have enough open credit.
Continue making on-time payments for at least six months.
Many clients in this category see major improvement within half a year. Scores often rise from the 500s into the 600s, opening doors to mortgage options that once seemed out of reach.
3. Complex Credit: Getting Professional Support
Some clients are recovering from financial hardships such as unemployment, divorce, or medical debt. If your score is in the 400s and your credit report includes collections or charge-offs, professional help may be the best next step.
Two types of professionals can help you rebuild:
Credit repair agencies – A reputable Utah-based company like Premier Credit can challenge inaccurate information, negotiate deletions, and help you restore your credit profile.
Bankruptcy attorneys – For some clients, a Chapter 7 or Chapter 13 bankruptcy is a way to reset and rebuild. Depending on your case, you could qualify for a home loan in as little as one year after filing.
Our team can connect you with trusted professionals who specialize in helping homebuyers get mortgage-ready. You’ll have clear guidance on which approach makes the most sense for your situation.
No Matter Where You’re Starting, You Can Get There
Whether you’re only a few months away from a higher credit score or facing a longer recovery, remember this: you’re never too far gone.
“The two years will go by whether you do it or not. Would you rather spend them stuck, or moving toward homeownership?”
In our free pre-approval consultation, we will create clear, step-by-step action plans that help you turn low credit scores into real homeownership opportunities.
If you haven’t started with our basecamp episodes and you’d like a walk through of the entire home buying process as well as the benefits of owning a home, start here with Basecamp 1.