Building Your Credit Score for Big Purchases

Posted on July 2, 2025

IMAGE: Couple smiling and being handed keys to new homeAre you dreaming of buying your first home or other big purchase? Your credit score and report play a factor when you apply for a loan. Learn tips on how to build your credit score so that you’re clear to close on a mortgage or other loan.

Steps to Take When Establishing Credit

If you’re just starting to build credit, you have a few options including secured credit cards or becoming an authorized user on someone else’s account. A secured credit card is one where you make a deposit that becomes the credit limit. By making payments on time, you’ll build your credit score and may become eligible for other credit cards. Learn about Texell’s Aspire credit card if you’re thinking about applying for a secured credit card.

Another way to build your credit is to ask to become an authorized user on an account with someone who has established credit. Your parents or another family member can add you to their credit accounts while you help make payments. If you’re paying rent, utilities, or other bills, make sure you’re paying these on time each month. For more tips on building credit, read 4 Ways to Start Building Credit.

Tips to Manage Your Credit Score and Report  

Your credit score is determined by a mix of your payment history, the types of credit accounts you hold, length of credit history, and other factors. To improve your credit score, review your credit report regularly. This report lists your credit accounts and any inquiries into your credit history. You can request your free credit report once a year at AnnualCreditReport.com.  

To improve your credit score, pay the balance off in full each month to avoid interest. If you can’t pay off the balance, strive to keep a low balance that’s at least 30% below the credit limit. You may also ask lenders to increase the credit limit if you’ve been making payments on time but be careful not to add to your debt once your limit is raised.

Plan to pay down credit card debt quickly to boost your score. Read Popular Strategies to Get Out of Debt for tips on paying down credit card debt. However, once you’ve paid off a credit account, don’t close it as the amount of available credit is another factor of your score.

Financial Tools for Budgeting and Savings Goals  

Online tools and apps for building your credit score can help you achieve your dream of making a big purchase. For Texell members, Credit Score & Report in Digital Banking is a great tool to use for setting a budget and savings goals. Learn about all the factors that make your credit score and follow personalized recommendations in the Credit Score Action Plan to reach your goals faster. Learn more about this tool in Assess, Act, and Achieve Your Credit Score.

When you’re ready to apply for a loan for a large purchase that requires a credit inquiry, avoid opening any new credit accounts. Hard credit report inquiries temporarily lower your score. Having a good mix of different credit accounts and a long history of on-time payments also helps you get approved for a home loan.

If you’re thinking about buying your first home, Texell’s Home Loan Heroes are ready to guide you from start to close. They’ll discuss your home loan options to find the mortgage that fits your needs. Visit TexellHomeLoans.com to or call 254.774.5104 to get started today. 


If you wish to comment on this article or have an idea for a topic we should cover, we want to hear from you! Email us at editor@texell.org.

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