Are you looking for a loan with less-than-ideal credit? Your credit score shows lenders how likely you are to repay what you owe. (FICO® Scores – The Most Widely Used Credit Scores, n.d.)

It’s like a grade that predicts whether you might miss a mortgage payment soon. Lenders review your score to judge risk. (Does my credit score affect my ability to get a mortgage loan or the mortgage rate I pay?, 2024) A low score is like an F in school, making lenders nervous. Think of your credit score as a GPA for borrowing. If you’ve struggled with a mortgage, your GPA drops. Some have high GPAs, others have mixed grades. The credit “school” never ends, so keep your score as high as possible. How do you raise your credit GPA? The answer is similar to what you did in school:

1. Aim for a better grade. Start by paying those you owe. If you have debts in collections or past due, focus on paying them. Even with an F before, repaying debts can bring your score to a C+.
2. Avoid more F’s on your record. Pay your mortgages on time. Take payments seriously and don’t be late. Late or missing payments lower your score. (Credit Scores | Consumer Advice, 2024) Pay on time to keep your credit GPA high.
3. Don’t borrow more than you can handle. Only take what you can manage. For credit, avoid too many loans or mortgages. Keep your mortgage balance below 30% of your credit limit. (Fiano, 2019) Lenders worry if you’ve maxed out cards and want another loan. The more loans, the higher the chance of missed payments, including your new mortgage.
4. Try to remove bad marks from your report. Disputing errors with credit bureaus quickly improves your score. (How do I dispute an error on my credit report?, 2024) If a mistake is removed, your score goes up. Dispute mistakes with each bureau. If they agree, your score improves. If not, keep using the earlier steps to raise your score.

The good news: your credit score is averaged over time. Time helps. Your score is based on recent and past activity, typically over the past three to five years. (Adam & Thomas, 2026) Negative marks will eventually disappear. With good habits, your score will rise, improving your chances for an Arizona home loan even after credit issues.

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026.  All rights reserved

References

(n.d.). FICO® Scores – The Most Widely Used Credit Scores. myFICO.com. https://www.myfico.com/credit-education/fico-scores-bridge

(2024). Does my credit score affect my ability to get a mortgage loan or the mortgage rate I pay?. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/does-my-credit-score-affect-my-ability-to-get-a-mortgage-loan-or-the-mortgage-rate-i-pay-en-319/

(2024). Credit Scores | Consumer Advice. Federal Trade Commission. https://consumer.ftc.gov/articles/credit-scores

Fiano, L. (January 14, 2019). Credit score myths that might be holding you back from improving your credit. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/

(2024). How do I dispute an error on my credit report?. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/askcfpb/1303

Adam, J. & Thomas, R. (2026). How Your Credit Score Is Calculated. ConsumerAffairs. https://www.consumeraffairs.com/online/how-is-credit-score-calculated.html