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.
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.