Improving your credit score before applying for a mortgage can help you qualify for lower interest rates, better loan options, and a more affordable monthly payment. This guide breaks down practical strategies to raise your credit score and improve your financial profile in the months leading up to homeownership.

Why improving your credit score matters before getting a mortgage

Your credit score plays a central role in the mortgage process. Lenders use it to assess how likely you are to repay your loan on time, which 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.

A better score can also open the door to more loan programs, lower down payment requirements, and reduced private mortgage insurance (PMI) costs. Since even small changes in your rate can translate into tens of thousands of dollars in savings, taking time to improve your credit score is one of the smartest things you can do before applying for a mortgage.

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 week 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• Duplicate or outdated accounts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.

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.

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. For example, if 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.

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 mortgage
• Hold off on financing big purchases like furniture or a car
• As you shop around for a mortgage, 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.

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, which can raise your utilization rate, and shorten 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.

Consider rapid rescoring or a credit-building product

If you’re working with a lender, ask about rapid rescoring. This is a process that updates your credit report quickly — sometimes within days — to reflect recent positive changes, such as debt payoff or error correction. It can be a valuable tool if your credit score is just shy of qualifying for a better rate.

Other tools that can help improve your credit score include:

• Secured credit cards: These require a deposit but help build a positive payment history.
• Credit-builder loans: These loans are designed to establish or repair credit through small, manageable payments.
• Authorized user status: Being added to a responsible person’s credit card can boost your score, especially if the account has a long history and low balance

Make sure any product you choose reports to all three major credit bureaus.

How far in advance should you improve your credit score?

Ideally, start improving your credit score six to 12 months before applying for a mortgage. 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 mortgage experience.

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

Compare personalized mortgage rates now and see how much you can save. Take control of your financial future. Check today’s rates and start taking steps toward making your dream of homeownership a reality.