How to Improve Your Credit Score Before Buying a Home

Your credit score plays a huge role in the home-buying process. It affects not only whether you qualify for a mortgage but also the interest rate you’ll pay. A higher score can save you thousands of dollars over the life of your loan. If you’re planning to buy a home soon, here are some practical steps to boost your credit score.

1. Check Your Credit Report for Errors

Start by reviewing your credit report from all three major bureaus (Experian, Equifax, and TransUnion). Mistakes like incorrect accounts, late payments, or duplicate debts can drag your score down. Dispute any inaccuracies right away — correcting errors can quickly give your score a bump.

2. Pay Down Credit Card Balances

Your credit utilization ratio (the amount of credit you’re using compared to your limit) is a major factor in your score. Aim to keep your utilization under 30% — ideally under 10%. Even small paydowns on high balances can make a noticeable difference.

3. Make On-Time Payments

Payment history makes up about 35% of your credit score. Set up automatic payments or reminders to ensure you never miss a due date. Even one late payment can hurt, while a consistent streak of on-time payments boosts your reliability in lenders’ eyes.

4. Avoid Opening New Credit Accounts

Every new account results in a hard inquiry, which can temporarily lower your score. Avoid opening credit cards, car loans, or financing offers while preparing to buy a home. Focus on strengthening the accounts you already have.

5. Keep Old Accounts Open

Length of credit history matters. Closing older accounts shortens your credit history, which can lower your score. Even if you don’t use an old card often, keep it open and active with small purchases paid off monthly.

6. Mix Up Your Credit Responsibly

Having a mix of credit types (credit cards, installment loans, etc.) shows lenders you can handle different forms of debt. Don’t take out unnecessary loans, but if you already have a healthy mix, it helps your score.

Final Thoughts

Improving your credit score doesn’t happen overnight, but with consistent effort, you can make significant progress in just a few months. A higher score means better loan terms, lower interest rates, and more buying power when you’re ready to purchase your home.