Build and Maintain a Positive Credit History

Build and Maintain a Positive Credit History

Build and Maintain a Positive Credit History

Apr 28, 2021

Are you financially ready to purchase a new home but worried that your credit score will hold you back? Don’t worry, you’re not alone. A solid credit history takes time to build and is often disregarded until it comes time to apply for a significant purchase. Nevertheless, whether you are trying to pre-qualify for a home loan, apply for low-interest credit, seeking employment or starting a business, finding out how to increase and maintain your credit score has never been more important.

Below are a few tips that we wanted to share with our clients and potential clients from and that may provide insight for you to better understand and improve your credit history.
*The guidance provided below is for informational purposes only and taken from published guidance from the Experian and Equifax credit bureaus. None of the guidance provided below is necessarily the opinion and/or guidance of DSLD Mortgage.  All consumers are encouraged to consult with their financial advisor before undertaking any credit counseling or credit repair services.

5 Tips to Improve your credit score (1)


When it comes to credit card usage, there are pros and cons to utilizing them.  When you first apply for new credit, this is considered a hard credit hit so it may initially have a negative impact.  A new account will also lower the average age of your accounts, and when it comes to credit history, creditors want to see stable longevity. For this reason, we suggest if you are considering applying for a home loan or car loan in the near future, it is best to hold off on applying for any other new credit. 

Nevertheless, if you are considering opening a new credit card or, even better, utilizing one you already have, below are some perks they can offer when utilized strategically. 

1. Increase available credit.

"Opening a new credit line increases your available credit, which can positively affect your credit score. The key is to keep the balance low, so your available credit stays high. This is known as your credit utilization rate, and it is best to keep your overall credit usage under 30%.” For the best impact on your credit, it is recommended that you pay off your balance each month.

2. Improve credit mix.

"Your credit mix refers to the different types of accounts you have in your credit file.  There are two broad categories: installment credit and revolving credit. Installment credit refers to loans you take out and repay a single time, such as mortgages, car loans and personal loans. Revolving credit refers to accounts you can charge a balance on, repay and reuse, such as credit cards and home equity lines of credit. Credit mix makes up 10% of your score, so opening a new credit card may be helpful if most of your existing accounts are installment loans."

3. Help to establish strong payment history.

According to, "Payment history comprises 35% of your credit score, making it the number one influence on your credit." When you are consistently using and making monthly credit card payments by the due date, you have a chance to build up a positive payment history. The key is time and consistency so stick to it. 

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1. Pay your bills on time.

This may seem trivial, and maybe one month you forgot or another month you put it off a few weeks, but lenders look at how reliable your bill payments are. Use any resources or tools available to you for setting up automatic payments or calendar reminders.

"If you are currently behind on any payments, bring them current as soon as possible. Time is your friend, and older late payments have less effect than more recent ones."

2. Only open new credit accounts as needed.

Although hearing “Apply for store credit today and save 30% on your purchase!” may sound enticing, unnecessary credit can harm your credit score in multiple ways, from creating too many hard inquiries on your credit report to tempting you to overspend and accumulate debt.

3. Check Your Credit Reports.

Experian recommends periodically checking your credit reports at all three credit reporting bureaus (TransUnion, Equifax, and Experian) for any inaccuracies. "Incorrect information on your credit reports could drag your scores down. Verify that the accounts listed on your reports are correct. If you see errors, dispute the information, and get it corrected right away.”

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Our number one goal is to help our customers achieve their dream of home ownership. We never want you to feel defeated when we are unable to issue a pre-qualification due to credit history.  Building a positive credit is always achievable, just remember that it does take time, and it does not happen overnight. With a little patience and diligence on your end, you will begin to see life changing benefits and financial freedom. 
For more information on credit visit our source websites: 
1. Casey Morris Jan. 18, 2021 Does Adding a Credit Card Improve Your Credit Score?
2. Louis DeNicola April 18,2021 How to Improve Your Credit Score 
3. Are Misconceptions Affecting Your Credit score?

Please note: DSLD Mortgage, LLC does not offer credit repair services. Offer of credit is subject to credit approval. DSLD Mortgage, LLC NMLS #120308 is an equal opportunity lender. 7660 Pecue Ln Suite 300 Baton Rouge, LA 70809.

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