How to Improve Your Credit Score Before Applying for a Mortgage
If you’re planning to buy a home, your credit score can make or break your chances of securing a mortgage and significantly impact the interest rate you’ll receive. The higher your score, the better your loan options and long-term savings.
But don’t worry if your credit isn’t perfect. With the right steps, you can boost your credit score and position yourself for mortgage approval. In this post, we’ll explain how credit scores work and share practical tips to help you improve yours before applying for a home loan.
Why Your Credit Score Matters
Lenders use your credit score to assess how risky it is to lend you money. A higher score means you’re more likely to repay on time which translates to lower interest rates and better loan terms.
Here’s how credit scores are typically ranked:
| Credit Score Range | Rating |
|---|---|
| 800–850 | Excellent |
| 740–799 | Very Good |
| 670–739 | Good |
| 580–669 | Fair |
| Below 580 | Poor |
For most conventional loans, a score of 620 or higher is required — but scores of 740+ typically qualify for the best rates.
🛠️ How to Improve Your Credit Score
1. Check Your Credit Reports for Errors
Start by requesting your free credit reports from:
Look for:
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Incorrect personal info
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Late payments you didn’t make
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Accounts that aren’t yours
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Duplicate accounts
Dispute any errors you find with the credit bureaus (Experian, Equifax, and TransUnion) — fixing mistakes can boost your score fast.
2. Pay Bills on Time — Every Time
Payment history makes up 35% of your FICO score. A single missed payment can drag your score down for months.
Tip:
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Set up automatic payments or calendar reminders
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If you’ve missed a payment, get current and stay current
3. Reduce Your Credit Utilization
Your credit utilization ratio is the amount of credit you use compared to your total available limit. Experts recommend keeping it below 30%, ideally under 10%.
Example:
If your credit card limit is $10,000, aim to carry no more than $1,000–$3,000 in balances.
To lower your utilization:
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Pay down existing credit card debt
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Request a credit limit increase (but don’t use the new limit!)
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Spread balances across multiple cards
4. Avoid Opening or Closing Credit Accounts
While it may be tempting to open a new credit card to boost your score, new inquiries and shortened account history can hurt in the short term.
Likewise, closing old accounts can reduce your total available credit and hurt your score.
Best move: Keep existing accounts open and limit new applications in the months before applying for a mortgage.
5. Don’t Take On New Debt
Avoid financing big purchases (like a car or furniture) before applying for a mortgage. New debt increases your debt-to-income ratio (DTI) and could reduce your mortgage approval chances.
6. Become an Authorized User
If a family member or partner has a strong credit history, ask to be added as an authorized user on their credit card. This can help your score by extending your credit history and lowering your utilization — as long as they manage the account responsibly.
7. Use a Credit-Builder Loan or Secured Card (If Needed)
If your credit history is limited or damaged:
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Consider a secured credit card (you deposit a security amount as collateral)
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Take out a credit-builder loan from a credit union or online lender
Make small monthly payments and ensure they’re reported to the credit bureaus.
⏱️ How Long Does It Take to Improve Your Score?
Improvement depends on your starting point and financial habits. Small changes can show results in 1–3 months, while more serious credit repair can take 6–12 months or longer.
The earlier you start, the better positioned you’ll be when it’s time to apply for a mortgage.
🧠 Final Thoughts
Improving your credit score is one of the smartest things you can do before applying for a mortgage. It can open the door to better interest rates, lower monthly payments, and higher loan approvals — saving you thousands over the life of your mortgage.
