How to Improve Your Credit Score Before Applying for a Mortgage

Your credit score directly determines the interest rate you'll receive — and the difference between a 680 and a 760 score can be 0.5–1.0% in rate. On a $400,000 loan, that's $100–$200 more per month, or $36,000–$72,000 over 30 years.

• Pay down credit card balances: Credit utilization (balance ÷ limit) accounts for 30% of your score. Getting below 30% — ideally below 10% — can add 20–50 points quickly.
• Dispute errors: 1 in 5 credit reports has an error. Check all three bureaus (Equifax, Experian, TransUnion) and dispute anything inaccurate.
• Become an authorized user: If a family member has a card with a long history and low utilization, being added as an authorized user can boost your score.

• Don't open new accounts: New credit inquiries and new accounts lower your average account age and can drop your score 5–10 points each.
• Don't close old accounts: Closing a card reduces your available credit and increases utilization. Keep old accounts open even if you don't use them.
• Don't miss payments: Payment history is 35% of your score. One 30-day late payment can drop your score 60–110 points.