“How to Build Your Credit Score Before Applying for a Mortgage”

Your credit score plays a major role in your ability to buy a home. It influences not only whether you’ll be approved for a mortgage but also the interest rate you’ll receive — and that can mean thousands of dollars in savings (or extra costs) over the life of your loan.

If you’re planning to buy a home soon, here’s how to build and strengthen your credit score before you apply.

1. Know Where You Stand

Start by checking your credit score and report from all three major bureaus — Experian, Equifax, and TransUnion. You’re entitled to one free report from each per year at AnnualCreditReport.com.

Look for errors such as:

• Incorrect personal information

• Accounts that aren’t yours

• Outdated balances or missed paymentsDispute any inaccuracies immediately — even small errors can impact your score.

2. Pay Every Bill on Time

Your payment history makes up about 35% of your FICO score, making it the single biggest factor. Set reminders, use automatic payments, or calendar alerts to ensure every bill — from credit cards to utilities — is paid on time.

Even one late payment can lower your score significantly, so consistency matters most.

3. Reduce Your Credit Card Balances

High credit utilization (how much of your available credit you’re using) can drag your score down. Try to keep balances below 30% of your credit limit, and if possible, under 10% for the best results.

If you carry balances on multiple cards, consider paying down the ones with the highest interest rates first.

4. Avoid Opening or Closing Too Many Accounts

Every time you open a new credit account, your score may dip slightly because of a “hard inquiry.” Too many new accounts in a short period can make lenders view you as a higher risk.

Similarly, closing old accounts can shorten your credit history — another factor that affects your score. Keep older cards open if possible, even if you use them occasionally for small purchases.

5. Diversify Your Credit Mix

Having a variety of credit types — such as credit cards, installment loans, or auto loans — can improve your score. It shows lenders you can manage different kinds of debt responsibly.

However, don’t take on unnecessary loans just to build credit. Focus on maintaining healthy habits with what you already have.

6. Don’t Make Big Purchases Before Applying for a Mortgage

Avoid major new debts (like a car loan or furniture financing) right before you apply for a mortgage. These can temporarily lower your score or affect your debt-to-income ratio, both of which could hurt your approval chances.

✅ Final Thought

Improving your credit score doesn’t happen overnight — but with steady effort, you can make meaningful progress within a few months. A strong credit score can unlock lower interest rates, better loan options, and smoother mortgage approval.

If you’re thinking about buying a home soon, I’d be happy to connect you with trusted lenders who can review your credit and help you prepare for mortgage success.