Here’s How to Boost Your Credit After a Big Purchase Impacts Your Score

A recent study found that in the six months after getting a mortgage, credit scores may fall by about 20 points on average across the nation’s 50 largest metros.

Seeing your credit score drop after a major purchase can be frustrating, especially if you have plans to apply for other financing. Unfortunately, the credit score recovery cycle takes around 339 days on average.

It’s also important to consider the fact that there are delays between when a borrower makes a payment and when that payment actually shows up on their credit report.

Because of this phenomenon, credit scores might remain low for a while even after the borrower has made several on-time loan payments.

How to Rebuild Your Credit Score after a Decline

The best step you can take toward better credit after a mortgage is to pay your credit obligations on time. That advice applies not just to your new mortgage loan, but to your other debts as well.

In addition to on-time payments, you might consider paying down any outstanding credit card balances you owe.

Credit utilization–the connection between your credit card limits and balances–can have a significant impact on your credit score.

As you pay down your credit card debt, your utilization rate should go down. That reduction can have a positive impact on your credit score.

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