When you apply for a mortgage backed by the Department of Veterans Affairs (a VA loan), lenders take a long, hard look at you. They decide what to charge in interest based on how your financial profile looks. And your credit score is a big piece of the puzzle there. 

Improving your credit score before applying for a VA loan can help you qualify for lower interest rates and, as a result, a more affordable monthly payment. The question, then, is how you give your score a boost. 

This guide breaks down practical strategies to raise your credit score and improve your financial profile in the months leading up to applying for VA home loans.

Why improving your credit score matters before getting a VA loan

Your credit score plays a central role in the mortgage process. It’s basically a measure of how well you’ve managed debt in the past. 

Lenders use that three-digit number to assess how likely you are to repay your loan on time. That directly impacts whether you're approved and what interest rate you’re offered. The higher your score, the lower your rate — and the more you save.

Even small changes in your rate can translate into tens of thousands of dollars in savings. So taking time to improve your credit score is one of the smartest things you can do before applying for a VA loan.

5 ways to boost your credit score before applying for VA home loans

There are a few actionable steps that can help you improve your credit score:

#1: Check your credit report for errors

Before you can improve your credit score, you need to understand what’s on your credit report. You’re entitled to one free credit report per year from each of the three major bureaus — Experian, TransUnion, and Equifax — through AnnualCreditReport.com.

Review each report carefully and look for:

• Incorrect account balances
• Accounts that don’t belong to you
• Late payments that were actually on time
• Duplicate or outdated accounts

If you find any inaccuracies, file a dispute with the credit bureau reporting the error. Correcting even one mistake — like a wrongly reported late payment — can give your score a noticeable bump. This is one of the quickest ways to boost your score before applying for a VA loan. 

#2: Pay all your bills on time

Payment history is the single biggest factor in your credit score, making up about 35% of your FICO score. Late or missed payments can significantly hurt your score, especially if they’re recent or repeated.

To improve your credit score:

• Set up autopay or reminders to make sure bills are paid on time
• Pay at least the minimum amount due on all accounts
• Bring any past-due accounts current as soon as possible

If you’ve had late payments in the past, don’t panic. Older negative marks carry less weight over time. The sooner you get current, the sooner your score can begin to recover.

#3: Pay down credit card balances

Your credit utilization ratio — how much credit you’re using compared to your total available credit — makes up about 30% of your credit score. Ideally, you should keep your utilization below 30%, and below 10% for the best results.

If, for example, you have a credit card with a $5,000 limit, try to keep the balance below $1,500 — and below $500 when you can. 

Here’s how to improve your utilization rate:

• Pay down high balances, especially on cards near their limit
• Spread balances across multiple cards if needed
• Avoid maxing out any one card, even if you pay it off each month

Lowering your utilization can lead to a quick boost in your score, often within one billing cycle. It’s another great option if you want to apply for a VA loan soon. 

#4: Avoid applying for new credit

Every time you apply for a new loan or credit card, a hard inquiry is added to your credit report. While one or two inquiries might only lower your score by a few points, multiple inquiries in a short period can signal risk to lenders and drag your score down.

To avoid damaging your credit:

• Don’t open new credit cards or loans in the months before applying for a VA loan
• Hold off on financing big purchases like furniture or a car
• As you shop around for VA loans, do it within a 14–45 day window so inquiries are treated as a single event rather than multiple separate hard inquiries

Keeping your credit activity stable tells lenders you’re not overextending yourself, which is especially important when preparing for a major purchase like a home.

#5: Don’t close old credit accounts

It might seem logical to close unused credit cards, but doing so can actually hurt your score. Closing accounts reduces your total available credit, raising your utilization rate, and shortens your average credit history — both of which may lower your score.

Instead:

• Keep older accounts open, especially those with no annual fee
• Use them sparingly to keep them active, then pay them off right away
• Focus on maintaining a long, clean credit history

A longer credit history with low utilization and on-time payments is a winning combination for your score.

How far in advance should you improve your credit score?

Ideally, start improving your credit score six to 12 months before applying for a VA loan. This gives you time to pay down debt, establish a track record of on-time payments, and correct any errors on your report.

If you're planning to buy a home sooner, don't worry. Some strategies, like reducing your utilization or correcting reporting errors, can have a near-immediate effect. Just remember: the earlier you start, the more options you'll have when it's time to apply for a loan.

Boost your credit, boost your buying power

A higher credit score doesn’t just mean a better mortgage rate. It means more homebuying power, lower monthly payments, and long-term financial peace of mind. By taking steps to improve your credit score before you apply, you’re giving yourself the best shot at a smooth and affordable VA loan experience.

Ready to see what your improved credit score could get you?

Compare personalized VA loan rates now and see how much you can save. Check today’s VA rates and start taking steps toward making your dream of your new home a reality.