Tips for a First Time Home Buyer on Knowing Your Credit Score

Tips for First-Time Home Buyers: Why Knowing Your Credit Score Matters Before Buying in Charleston, SC

Buying your first home in Charleston, South Carolina is an exciting milestone — but before you start touring homes or applying for mortgages, it’s important to know where your credit stands. Your credit score plays a major role in determining what loan programs you qualify for and what interest rate you’ll receive.

At Better Homes and Gardens Real Estate Palmetto, we help first-time home buyers across the Lowcountry understand and strengthen their financial position before starting the home search. Here’s how you can take control of your credit score and set yourself up for success.

1. Obtain a Free Credit Report

Start by requesting your free credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — at www.annualcreditreport.com.
Reviewing all three allows you to:

Verify your personal information
Check for any outdated accounts or late payments
Spot errors or potential fraud that could impact your score

Even small inaccuracies can hurt your loan eligibility, so catching and correcting them early can save you time and money when it’s time to get pre-approved.

2. Check for Accuracy

Once you’ve received your reports, go line by line to confirm that all accounts, payment histories, and balances are accurate. If you find something incorrect, contact the credit bureau right away to dispute the issue.

Why it matters: Mortgage lenders rely on this data to evaluate your risk. A few points in your credit score can make a big difference in your interest rate and overall home affordability.

3. Understand What Impacts Your Credit Score

Your credit score is determined by several key factors:

Payment History (35%) – Consistently paying on time is the single biggest influence.
Credit Utilization (30%) – Using too much of your available credit can lower your score.
Length of Credit History (15%) – Older accounts show stability.
Credit Mix (10%) – A healthy mix of credit cards, loans, and accounts helps.
New Credit (10%) – Too many recent credit inquiries can temporarily reduce your score.

Understanding these components gives you the power to manage your credit strategically before buying your first Charleston home.

4. Monitor Your Credit Regularly

Credit management isn’t a one-time task. We recommend signing up for free credit monitoring tools through your bank or credit card provider.
Monitoring helps you:

Stay informed about changes to your score
Receive alerts for suspicious activity
Track your progress as you work toward mortgage readiness

Lenders look for steady financial behavior, so consistency matters just as much as your score itself.

5. Build and Improve Your Credit Before You Buy

If your score isn’t where you’d like it to be, focus on building positive credit habits:

Pay every bill on time even small ones
Keep credit card balances below 30% of your limit
Avoid opening multiple new accounts at once
Pay down existing debt whenever possible

Over time, these habits can raise your score and improve your mortgage eligibility, helping you qualify for lower interest rates and better loan terms.

Buying Your First Home in Charleston, SC?

Understanding your credit is one of the smartest first steps you can take before entering the market.
At Better Homes and Gardens Real Estate Palmetto, we connect first-time buyers with trusted lenders who can guide you through credit preparation, pre-approval, and financing options that fit your goals.

Our agents are here to walk you through every stage from getting your finances ready to getting your keys.

Let’s make your Charleston homeownership dream a reality. Call us today at 843-584-8326 or Speak with a Lender