How to Improve Your Credit Score to Buy a House

If you’re planning to buy a home, your credit score will have a big impact on whether you’re approved for a mortgage and what kind of interest rates and loan terms you’ll qualify for. The good news is that with the right steps, you can strengthen your credit profile and get closer to homeownership. If your score needs a boost, focus on the strategies that carry the most weight with mortgage lenders and can directly improve your credit score to buy a house.

Make On-Time Payments—Every Time

Payment history is the most important part of your credit score, and fortunately, it’s also one of the easiest to improve with consistency. Even a payment that’s just a few days late can hurt your score and remain on your credit report for up to seven years. What many people don’t realize is that recent late payments weigh more heavily than older ones. A 30-day slip last month can do more damage than one from years ago. If you’ve missed a payment, don’t stress. Getting current and staying that way will start to rebuild your score.

You might also consider asking your creditor for a goodwill adjustment if you’ve generally been responsible. Some credit-building tools can also help by reporting on-time payments for things like utilities, phone bills, or streaming services, adding positive history to your credit profile. Building a strong on-time payment record is one of the most effective mortgage approval tips.

Lower Your Credit Utilization Ratio

Your credit utilization ratio, how much credit you’re using compared to how much you have, accounts for about 30% of your FICO® Score. Lenders want to see that you can manage debt without maxing out your credit lines. A great goal is to keep your utilization under 30%, but those aiming for the best mortgage rates often go further, keeping it below 10%. Make a payment before your credit card’s statement closing date, not just before the due date. This lowers the reported balance, which is what credit bureaus see.

You can also request a credit limit increase, but only if your income supports it and your lender doesn’t require a hard inquiry. Another tactic is to redistribute balances across cards. If one card is maxed out, but others are near zero, your overall utilization may still look high. Spreading balances more evenly can help improve credit for mortgage applications by showing responsible credit management and improving your credit score to buy a house.

Keep Your Oldest Credit Accounts Open

The age of your credit history contributes to 15% of your score and gives lenders a sense of your long-term credit behavior. It’s tempting to close unused cards, especially if they come with annual fees, but doing so can shorten your average account age and reduce your available credit, both of which can ding your score. Instead, keep your oldest accounts active by putting small, recurring expenses, like a subscription or utility, on them and setting up autopay.

If you must close a card, consider closing a newer account first. And if an issuer offers a product change (like downgrading to a no-fee version of the card), that lets you retain the account’s age and history without the cost. Preserving your credit history is one of those often-overlooked mortgage approval tips that can make a noticeable difference when it’s time to qualify for a loan.

Avoid Applying for New Credit

While one or two credit inquiries may have a minimal impact, multiple applications in a short period can suggest financial instability, which is a red flag for mortgage lenders. This is especially true if you’re applying for revolving credit like credit cards. If you’re shopping for a mortgage, FICO® scoring models allow “rate shopping” or grouping multiple inquiries for the same loan type within a 14- to 45-day window into a single inquiry.

To be safe, do your mortgage shopping within a two-week span. Also, use soft-pull pre-qualification tools to check your odds with credit cards or personal loans without affecting your score. Avoid opening “buy now, pay later” accounts close to a mortgage application; some of these services now report to credit bureaus and may be viewed similarly to revolving debt. To improve credit for mortgage purposes, staying credit-stable during the months before applying is essential for keeping your credit score to buy a house high and steady.

Dispute Any Inaccuracies on Your Credit Reports

Mistakes on your credit report are more common than you might think, and even small errors, like a wrong credit limit or a payment marked late, can lower your score. Before applying for a home loan, request reports from major credit bureaus and review them line by line. Flag anything that looks unfamiliar or incorrect, and file a dispute with both the credit bureau and the creditor.

Most disputes are resolved within 30 days, and if validated, the correction could boost your score quickly. If a collection account has been paid, ask the collection agency for a “pay-for-delete” agreement. Some agencies will remove the account entirely from your report, rather than just updating the balance to zero. This can be a powerful, fast way to improve credit for mortgage readiness and support a stronger credit score to buy a house.

Pay Down High-Interest Revolving Debt First

Mortgage lenders focus heavily on your DTI (debt-to-income) ratio, but your credit score is particularly sensitive to high balances on revolving accounts like credit cards and lines of credit. These balances not only increase your utilization but may also suggest risky borrowing behavior. To make a dent fast, use the avalanche method. This means paying off high-interest cards first while making minimum payments on the rest. If that feels overwhelming, a balance transfer card or debt consolidation loan can simplify repayment and potentially lower your interest rate.

Lenders also look at the number of accounts with balances. Paying off low-balance cards completely, even if they’re not the highest interest, can improve your score by reducing the number of active debts reported. This strategy is among the most practical mortgage approval tips and can significantly boost your credit score to buy a house.

Help Moving Forward

At REMAX, we know buying a home starts well before you start house hunting. If you’re working on your credit or figuring out your financing, our agents are here to guide you and connect you with the right resources to improve credit for mortgage success. Let’s make your path to homeownership as smooth as possible. Reach out today.