How to Boost Your Credit Score Before Buying a Home

How to Boost Your Credit Score Before Buying a Home

Your credit score plays a major role in the homebuying process. It affects not only whether you qualify for a mortgage but also the interest rate you’ll receive. A higher score can save you thousands over the life of your loan. If you’re planning to buy a home soon, here are some proven ways to boost your credit score:

1. Check Your Credit Report for Errors
Start by pulling your credit reports from all three major bureaus—Equifax, Experian, and TransUnion—at AnnualCreditReport.com. Look for errors like incorrect balances, accounts you don’t recognize, or late payments you didn’t make. Dispute anything inaccurate immediately.

2. Pay Bills on Time—Every Time
Your payment history is the most important factor in your credit score. Set up automatic payments or calendar reminders to ensure you never miss a due date. Even one late payment can hurt your score.

3. Reduce Your Credit Card Balances
Aim to use less than 30% of your total credit limit. If your balances are high, start paying them down as quickly as possible. This is known as your credit utilization ratio, and lower is always better.

4. Avoid New Debt
Don’t take on new loans or open new credit cards in the months before applying for a mortgage. New credit inquiries can temporarily lower your score, and more debt could affect your approval chances.

5. Keep Old Accounts Open
Your credit history length matters. Unless there’s a good reason (like high annual fees), keep older accounts open even if you don’t use them regularly.

Final Tip:
Improving your credit score takes time, but even small changes can make a big impact. Start working on it months before you plan to buy, and you’ll be in a stronger position to secure the home—and mortgage—you want.