5 Ways to Improve Your Credit Score Before Applying
Your credit score affects both whether you qualify and what rate you're offered. A higher score can mean a meaningfully lower monthly payment over the life of the loan. Here are five practical moves in the months before you apply.
1. Pay down revolving balances
Credit utilization — how much of your available credit you're using — is one of the biggest factors in your score. Getting balances under 30% of your limit (and ideally under 10%) can produce a noticeable bump.
2. Don't close old credit cards
Length of credit history matters. Closing an old card can shorten your average account age and reduce your total available credit, both of which can hurt your score even if you're not carrying a balance.
3. Fix errors on your credit report
Pull your reports from all three bureaus and dispute anything inaccurate — a wrong late payment, an account that isn't yours, or outdated information. Errors are more common than people expect and can drag down an otherwise strong score.
4. Keep making every payment on time
Payment history is the single largest factor in most scoring models. Set up autopay for at least the minimum due on every account so nothing slips through during the homebuying process.
5. Avoid new credit applications
Each hard inquiry can ding your score slightly, and opening new accounts lowers your average account age. Hold off on financing a car, opening a new card, or other credit applications until after you close.
Not sure where your score stands?
Loan officers can review your credit profile with you and outline exactly what would move the needle before you apply.
Talk to a Loan Officer