Introduction

Your credit score is one of the most important factors lenders consider when you apply for a mortgage. A higher score can mean lower interest rates, better loan terms, and thousands of dollars saved over the life of your loan. The good news? You can take concrete steps to improve your credit score in the months before you apply.

This guide walks you through proven strategies to boost your score, with realistic timelines so you know what to expect. Time needed: 3-6 months for meaningful improvement.

620
Minimum Score for Most Mortgages
Though 740+ unlocks the best interest rates

Prerequisites

Before you begin improving your score, gather these essentials:

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  • Get free copies at AnnualCreditReport.com—the only federally authorized source

  • Many banks and credit cards offer free FICO or VantageScore access

  • Include credit cards, loans, and any collections accounts

  • Some strategies take time to impact your score

Step-by-Step Instructions

Step 1: Check Your Credit Reports for Errors

Start by reviewing your reports from Equifax, Experian, and TransUnion. According to a Federal Trade Commission study, one in five consumers has an error on at least one credit report.

Look for: - Accounts that aren't yours - Incorrect payment statuses - Duplicate accounts - Wrong credit limits or balances

Timeline: File disputes immediately. Resolution typically takes 30-45 days.

Step 2: Pay Down Credit Card Balances

Your credit utilization ratio—the percentage of available credit you're using—accounts for about 30% of your score. Aim to get each card below 30% utilization, with below 10% being ideal.

Pro Tip
Pay down your highest-utilization cards first for the fastest score improvement. Even paying mid-cycle before your statement closes can help.

Timeline: Score impact typically appears within 1-2 billing cycles.

Step 3: Avoid Opening New Credit Accounts

Each new credit application triggers a hard inquiry that can temporarily lower your score by 5-10 points. In the months before applying for a mortgage, resist the temptation to: - Open new credit cards (even for sign-up bonuses) - Finance furniture or appliances - Take out personal loans

Timeline: Hard inquiries affect your score for 12 months.

Step 4: Become an Authorized User

Ask a family member with excellent credit and a long-standing account to add you as an authorized user. Their positive payment history can boost your score—even if you never use the card.

Watch Out
Only do this with someone who has low utilization and perfect payment history. Their negative marks could hurt your score.

Timeline: May appear on your report within 30-60 days.

Step 5: Keep Old Accounts Open

The length of your credit history matters. Don't close old credit cards, even if you're not using them. Closing accounts reduces your available credit (increasing utilization) and can shorten your credit history.

Timeline: Ongoing strategy—no immediate score impact.

Step 6: Set Up Automatic Payments

Payment history is the single largest factor in your credit score, accounting for 35%. Set up autopay for at least the minimum payment on every account to ensure you never miss a due date.

Key Takeaway
Even one late payment can drop your score by 100+ points and stay on your report for seven years.

Troubleshooting

You can submit additional documentation supporting your claim, file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov, or add a 100-word statement to your credit report explaining the dispute.

Older scoring models count collections regardless of payment status. However, newer models like FICO 9 and VantageScore 3.0 ignore paid collections. Ask your lender which scoring model they use.

Results vary based on your starting point. Someone with a 580 score and high utilization might see 50-100 point gains. Someone at 700 might only see 20-30 points of improvement using these strategies.

Most credit repair companies can't do anything you can't do yourself for free. Be wary of companies promising quick fixes or guaranteed results—legitimate credit improvement takes time.

Conclusion

Improving your credit score before applying for a mortgage is one of the smartest financial moves you can make as a first-time buyer. By disputing errors, lowering your utilization, and maintaining perfect payment history, you're positioning yourself for better rates and terms.

Your Action Plan
  • Pull your credit reports today and check for errors
  • Calculate your utilization on each card and create a paydown plan
  • Set up autopay on all accounts
  • Give yourself 3-6 months before applying for your mortgage

Next steps: Once your score is mortgage-ready, explore our guides on FHA loans for buyers with scores as low as 580, or learn about down payment assistance programs available in your state.