Hey there, I know. We’ve all heard it before: credit is essential. But if you’re considering getting into real estate, it’s even more important than you think. I learned that the hard way. I screwed up my credit in my early 20s, which took me years to recover. When I was ready to buy my first property, I was already in my 30s.

If I had known how important credit was, I could have saved myself a lot of time and money. So, if you’re thinking about getting into real estate, here are a few credit tips to keep in mind:

Pay your bills on time. This is the most critical thing you can do to improve your credit score. If you’re late on a payment, it can ding your score by 100 points or more.

Keep your credit utilization low. Your credit utilization ratio is the percentage of your available credit that you’re currently using. Aim to keep this ratio below 30%. For example, if you have a credit card with a $1,000 limit, you should only be using about $300 of it each month.

Don’t close old accounts. Closing old accounts can hurt your credit score. Even if you don’t use them anymore, keep them open and in good standing.

Avoid new credit applications. This can temporarily lower your score as it triggers a hard inquiry on your credit report. 

Dispute any errors on your credit report. If you see anything on your credit report that’s wrong, dispute it immediately. You can do this by contacting the credit bureau that issued the report.

I know it’s not always easy to keep your credit in good shape. But if you’re serious about real estate investing, it’s worth the effort. 


Here are a few additional tips to help you improve your credit score: 

Get a credit card with a low-interest rate and a high credit limit. This will help you keep your credit utilization low.

Use your credit card for small purchases and pay them off monthly. This will help you build a history of on-time payments.

Also, remember to check your credit report and track your progress regularly.  This will allow you to identify areas you need to improve on. 

Consider getting a secured credit card if you have bad credit. A secured credit card is a type of credit card that requires you to deposit a security deposit. This deposit will act as your credit limit.

Improving your credit score takes time and effort, but it’s worth it in the long run. If you’re serious about real estate investing, start working on your credit today. 

I know I screwed up my credit in my early 20s, but I’m not here to lecture you. I’m just here to share my story and help you avoid making the same mistakes I did. So, if you’re considering getting into real estate, start working on your credit today. And if you need any help, don’t hesitate to reach out.

Just kidding, I’m here to lecture you. But I’m also here to help. So, let’s work together to improve your credit score and achieve your real estate goals!