Why Credit Matters and How to Rebuild Credit the Right Way
Whether you’re planning to buy a home, refinance, or simply get your finances in order — understanding how credit works and learning how to rebuild credit is key to your financial success.
At Veterans Mortgage Solutions, we work with veterans and service members every day who are working hard to improve their credit. And the good news? It’s possible — and often faster than you think.
💳 Why Is Credit So Important?
Your credit score plays a huge role in your financial life. It affects:
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🏠 Your ability to qualify for a home loan or refinance
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💰 The interest rates you’re offered (higher score = lower rate)
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🛒 Approval for credit cards, car loans, or rental applications
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🧾 Even job applications or insurance rates in some cases
If your credit score is low, you may be paying thousands more in interest than someone with a higher score — or be denied altogether.
📉 What Hurts Your Credit Score?
Understanding what impacts your credit score is the first step in improving it:
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❌ Late or missed payments
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❌ High credit card balances
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❌ Collections and charge-offs
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❌ Too many hard inquiries
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❌ A short or inactive credit history
🛠️ How to Rebuild Credit – Step-by-Step
If you’re wondering how to rebuild credit, these steps can help you take control and start seeing improvement:
✅ 1. Check Your Credit Reports
Go to AnnualCreditReport.com and request your free credit report from all three bureaus (Experian, Equifax, TransUnion). Review them for:
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Errors or inaccuracies
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Fraudulent accounts
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Old accounts that should have been removed
Dispute anything incorrect — it can boost your score quickly.
✅ 2. Pay Down Existing Debt
Credit utilization (how much of your credit limit you’re using) should stay below 30%, ideally under 10%. Focus on paying down:
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High-interest credit cards
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Small balances to eliminate open accounts
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Any account that’s late to avoid future damage
✅ 3. Make On-Time Payments (Always)
Even one missed payment can hurt your score for up to 2 years. Set up autopay or reminders to pay at least the minimum due on time every month.
✅ 4. Add Positive Accounts
You may need to build a positive history. Here’s how:
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Apply for a secured credit card (backed by a deposit)
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Use a credit-builder loan from a credit union or bank
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Become an authorized user on someone else’s well-managed account
Each of these helps add positive activity to your credit file.
✅ 5. Avoid New Credit Applications
Every time you apply for new credit, a hard inquiry hits your score. While one won’t hurt much, multiple inquiries in a short period can lower your score and make you look risky to lenders.
🪖 How Credit Impacts Your VA Loan
If you’re a veteran looking to use your VA home loan benefit, your credit score still matters — even though the VA doesn’t set a minimum score.
Most VA-approved lenders look for a 580–620+ credit score, depending on your full financial picture. The higher your score, the:
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✅ Easier it is to get approved
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✅ Lower your interest rate can be
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✅ Lower your monthly mortgage payment will be
Rebuilding credit is one of the smartest moves you can make if you’re planning to buy or refinance a home.
💬 How Veterans Mortgage Solutions Can Help
At Veterans Mortgage Solutions, we work with veterans every day who are rebuilding their credit. We offer:
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✅ Soft credit pulls for Pre-Approval (won’t hurt your score)
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✅ One-on-one credit consultations to help you understand what’s holding you back
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✅ Flexible lender options that specialize in VA loans for lower credit scores
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✅ Step-by-step support from application to closing day
Even if you’re not ready today, we’ll help you create a plan to get there.
🎯 Take the First Step Today
Don’t let a low credit score hold you back. With the right strategy and support, you can rebuild your credit — and open the door to better financial opportunities, including VA homeownership.
📢 Apply now or schedule a consultation today:
https://veteransmortgagesolutions.com/veterans-apply-here/