How to Build Your Credit Score Before Buying a Home

If you’re planning to buy a home, your credit score will play a major role in how much you can borrow and the interest rate you’ll receive. A higher score can mean thousands of dollars saved over the life of a loan. The good news? You can start improving your credit well before you begin house hunting. Here are practical steps to boost your score and set yourself up for success.

1. Check Your Credit Report for Errors

Begin by requesting a free copy of your credit report from the three major bureaus—Experian, Equifax, and TransUnion. Mistakes like incorrect balances or outdated accounts can drag down your score. Dispute any errors right away.

2. Pay Bills on Time, Every Time

Payment history makes up the largest part of your credit score. Set up automatic payments or reminders to ensure you never miss a due date. Even one late payment can hurt your score.

3. Reduce Your Credit Utilization

Lenders like to see that you’re not maxing out your credit cards. Aim to keep your balances under 30% of your total credit limit. Paying down existing debt is one of the fastest ways to improve your score.

4. Avoid Opening New Credit Accounts

Each new credit application results in a “hard inquiry,” which can temporarily lower your score. Avoid opening new lines of credit right before applying for a mortgage. Focus on managing your existing accounts responsibly instead.

5. Keep Older Accounts Open

The length of your credit history matters. Even if you no longer use a particular credit card, keeping it open can help maintain your average account age and available credit.

6. Diversify Your Credit Mix (When Appropriate)

A healthy mix of credit types—like credit cards, auto loans, or student loans—can boost your score. That said, don’t take on unnecessary debt just to improve your mix.

Final Thoughts

Building your credit score takes time, but the payoff is worth it. A stronger score can secure you a better mortgage rate, save you money, and give you more options when buying your dream home. Start making these small changes now, and by the time you’re ready to buy, you’ll be in a much stronger financial position.