Credit Tips March 5, 2024 6 min read

5 Effective Ways to Improve Your Credit Score for a Mortgage

Learn practical strategies to boost your credit score and qualify for better mortgage rates.

Credit score improvement

Pay Bills on Time

Payment history accounts for 35% of your credit score

  • Set up automatic payments
  • Create payment reminders
  • Keep track of due dates
  • Contact creditors if you'll be late

Reduce Credit Utilization

Keep credit card balances low relative to credit limits

  • Aim for less than 30% utilization
  • Pay balances in full when possible
  • Request credit limit increases
  • Keep old accounts open

Fix Credit Report Errors

Review and dispute inaccurate information

  • Check reports from all bureaus
  • Dispute errors in writing
  • Include supporting documentation
  • Follow up on disputes

Limit New Credit Applications

Too many hard inquiries can lower your score

  • Only apply when necessary
  • Shop for rates within 14 days
  • Research qualification requirements
  • Wait between applications

Build Credit History

Establish and maintain positive credit accounts

  • Keep old accounts active
  • Consider a secured credit card
  • Become an authorized user
  • Use different types of credit

Common Credit Score Mistakes to Avoid

  • Closing old credit accounts
  • Maxing out credit cards
  • Missing payments
  • Applying for too many new accounts
  • Not checking credit reports regularly

Credit Improvement Timeline

0-3 Months

  • Review credit reports
  • Set up automatic payments
  • Dispute errors
  • Reduce credit utilization

3-6 Months

  • Continue timely payments
  • Monitor credit score changes
  • Address collection accounts
  • Maintain low balances

6-12 Months

  • Build payment history
  • Diversify credit mix
  • Review improvement progress
  • Prepare for mortgage application

Ready to Start Your Credit Improvement Journey?

Our mortgage experts can help you understand how your credit score affects your mortgage options.