How to Improve Your Credit Score Before Buying a Home
Liz Gibbs

Buying a home is one of the biggest financial decisions most people will ever make—your credit score plays a major role in that process. A stronger score can help you qualify for better mortgage rates, lower monthly payments, and more loan options. The good news? You can improve your score, often faster than you think.

Why Your Credit Score Matters in Home Buying

Mortgage lenders use your credit score to measure how risky it is to lend to you. A higher score can lead to:

  • Lower interest rates
  • Higher approval odds
  • Access to more loan programs (conventional, FHA, etc.)
  • Lower required down payments in some cases

Even a small improvement—like moving from a 660 to a 680—can save thousands of dollars over the life of a mortgage.

1. Check Your Credit Reports for Errors

Start by requesting free copies of your reports from the three major bureaus: Equifax, Experian, and TransUnion. Look for:

  • Incorrect late payments
  • Accounts you don’t recognize
  • Incorrect balances
  • Closed accounts reported as open

If you spot an error, dispute it immediately. Correcting just one inaccurate negative item can boost your score quickly.

2. Pay Down Your Credit Card Balances

Your credit utilization ratio is a major factor. Try to keep utilization below 30% for decent credit, or below 10% for the best results. Paying down even a portion of your balances can lead to a noticeable score jump.

3. Avoid Opening New Lines of Credit

When preparing to buy a home, avoid new credit cards, loans, or financing offers. Every time you apply, you get a “hard inquiry,” which can temporarily lower your score.

4. Set Up Automatic Payments to Avoid Late Fees

Payment history is the biggest part of your credit score. Even one late payment can significantly impact your score. Use autopay and reminders to ensure payments are on time.

5. Keep Old Accounts Open

Unless they have annual fees, keep older credit card accounts open. Closing them can shrink your available credit and raise your utilization ratio.

6. Become an Authorized User (If Needed)

If rebuilding, consider becoming an authorized user on a family member’s or partner’s card, provided they have a strong payment history.

7. Avoid Big Purchases Before Closing

Even after pre-approval, avoid new debt. Lenders re-check credit before finalizing, and new debt can jeopardize approval.

8. Build Credit Using Small, Smart Strategies

If significant rebuilding is needed, consider secured credit cards, credit-builder loans, or reporting services. Small, consistent steps make a big difference over time.

How Long Does It Take to Improve Your Score?

It varies, but many see improvements in 30–90 days with focused effort. More serious issues may take longer.

Improving your credit score before buying a home puts you in the best position for approval and low mortgage rates. Even modest improvements can mean big financial savings.