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

Your credit score is one of the most important factors lenders consider when deciding whether to approve your mortgage — and at what interest rate. A higher score can mean better terms, lower monthly payments, and thousands of dollars saved over the life of your loan.

If you’re thinking about buying a home, here’s how to strengthen your credit before you apply for a mortgage.

1. Check Your Credit Report Early

Start by pulling your credit report from all three major bureaus — Experian, Equifax, and TransUnion. You can get a free copy once a year at AnnualCreditReport.com.

Review your report for:

• Errors or inaccuracies (wrong balances, accounts you don’t recognize)

• Late payments or collections that can be disputed or paid off

• High credit utilization that needs lowering

Correcting mistakes early gives your score time to recover before you apply.

2. Pay All Bills on Time

Payment history makes up about 35% of your credit score. Even one missed payment can have a negative impact.Set up reminders or automatic payments to make sure every bill — credit cards, utilities, car loans — is paid on or before its due date.

3. Reduce Credit Card Balances

Lenders look at your credit utilization ratio — the amount of credit you’re using compared to your total limit.Try to keep your balances below 30% of your total credit limit, and if possible, below 10% for the best results. Paying down revolving debt is one of the fastest ways to boost your score.

4. Avoid Opening or Closing Accounts Before Applying

Each time you apply for new credit, your score may drop slightly due to a “hard inquiry.” Similarly, closing old accounts can shorten your credit history and lower your available credit, which can hurt your score.If you’re planning to buy a home soon, avoid major credit moves until after closing.

5. Keep a Mix of Credit Types

Lenders like to see that you can manage different types of credit — such as credit cards, car loans, or student loans. If you’ve only used one type, consider responsibly adding another small account to diversify your credit profile (but only if you can manage it easily).

6. Don’t Co-Sign Loans

Even if you’re helping a friend or family member, co-signing adds their debt to your record. If they miss payments, it can damage your score — just when you need it most.

💡 Final Thought

Building good credit takes time, but the effort pays off. A higher credit score not only helps you qualify for a mortgage but also unlocks better interest rates — saving you money for years to come.