Credit Score Goals for 2021

Special article brought to you by Econ Mortgage

The new year is a great time to reassess where you are at with your personal finances. One important factor to consider is your credit score. A strong credit score can help you qualify for the best rates on a home mortgage or other loan.

The first step to improving your credit score is to know where it’s at right now. Scores provided by sites like Credit Karma are not the same ones used by mortgage lenders, so your score pulled by a potential mortgage lender will likely be different from what you see on the free sites or apps. A score over 740 is generally considered very good. A score between 670 and 739 is good. 580 to 669 is fair, and anything below 580 is considered poor credit.

Once you know your score, you can set a credit goal to improve it. If your score is too low to qualify for a loan, you can set the goal to get it high enough to qualify. If your score is in the average range, you might set a goal to move into the next higher tier to unlock a better interest rate.

There are some credit factors that are hard to influence in the short-term. Length of credit history is an example of this. The only way to grow your credit history is to keep your accounts in good standing for a long period of time.

Paying down any credit cards with a large balance can help boost your credit score. This is especially important if your total balance is over 30% of your total available credit. If you can get it under 10% credit utilization, that’s even better.

If you close an older account, you lose the age value from the account and it could also impact the utilization ratio for any remaining open account balances. Even if you’re not using an account, keep it open to avoid dinging your credit.

Depending on your individual situation, you might see a big jump in your credit score by making a few adjustments like paying down your balances, but it can also take time to see a significant improvement to your score. Be patient and stick with your plan and you’ll see your score improve over time.

Who is Econ Mortgage?
At Econ Mortgage we keep our overhead low and use technology to streamline the mortgage process. We make less profit on each loan, so we can pass the savings on to our clients. Our clients keep coming back because they know we’ll take care of them and get them the best possible rate at a competitive price. Call us at (385) 258-3588 or visit

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