Resources & Tips
to Help You Achieve the Dream of Homeownership
Tuesday, March 11, 2025
Simple But Powerful Ways to Boost Your Credit Score Before Buying a Home
Think your credit score is holding you back from homeownership? You might be surprised at how much you can improve it before applying for a mortgage!
How Emma Improved Her Credit & Got Mortgage-Ready
When Emma decided she was ready to buy her first home, she was sure she’d get approved easily. She had a steady job, saved up for a down payment, and felt financially ready.
But when she checked her credit score? Not great.
She wasn’t far off, but a few unexpected dings—old mistakes, high credit utilization, and even a reporting error—were keeping her from qualifying for the best loan options.
Instead of giving up, Emma took action. Over the next few months, she made smart moves to improve her score. By the time she applied for her mortgage, her credit was in much better shape, helping her lock in a better deal on her home loan.
What did she do? The same things that can help you boost your credit before buying a home:
1. Check Your Credit Reports for Errors
Emma didn’t realize how common reporting mistakes are. When she checked all three of her credit reports (Experian, Equifax, and TransUnion), she found an old account that was mistakenly marked as unpaid.
Why this works:
Errors on your credit report can drag down your score significantly, and fixing them is one of the quickest ways to see an improvement. Even small inaccuracies—like a late payment that was actually on time—can cost you points.
How to do it:
- Get free copies of your credit reports at AnnualCreditReport.com.
- Look for accounts you don’t recognize, incorrect balances, or payments marked as late when they weren’t.
- Dispute errors directly with the credit bureau online—it’s free, and they’re required to respond within 30 days.
Pro tip: If a negative mark is legitimate but close to falling off (seven years for late payments, ten years for bankruptcies), it might be worth waiting it out instead of drawing attention to it.
2. Ask for a Credit Limit Increase
Like many people, Emma was using a big chunk of her available credit. A quick call to her credit card company got her a higher credit limit—lowering her credit utilization ratio, which helped bump up her score.
Why this works:
Your credit utilization ratio, which is how much credit you’re using compared to what’s available, makes up 30% of your credit score. Lowering this percentage can have a huge impact on your score.
How to do it:
- Call your credit card companies and request a credit limit increase.
- If asked, mention that your income has increased (if applicable) to improve your chances of approval.
- Keep your spending the same—don’t use the extra limit, or it defeats the purpose.
Pro tip: Some banks let you request a credit limit increase online in minutes with no hard inquiry on your credit. Check your bank’s website before calling.
3. Keep Spending in Check
Emma followed this rule: Never use more than 30% of her available credit. That meant if her credit limit was $10,000, she kept her balances under $3,000.
Why this works:
Lenders want to see that you can manage credit responsibly. The lower your balances, the better your score. Even dropping utilization from 50% to 30% can make a noticeable difference in your score within a billing cycle or two.
How to do it:
- Keep balances below 30% of your total credit limit—but under 10% is even better.
- If you have high balances, start paying down the smallest one first to gain momentum.
- Make extra payments throughout the month—some lenders report mid-cycle, so this can lower your utilization faster.
Pro tip: If you have a high balance but don’t have the cash to pay it off yet, consider making multiple small payments throughout the month instead of waiting for your statement to close. Some lenders report balances mid-month, and this trick keeps utilization low.
Bonus Tip: Become an Authorized User
Sarah’s dad had a credit card with a 15-year history and a low balance. He added her as an authorized user, and within a month, her credit age looked much better. Another easy win.
Why this works:
Credit age and payment history are two of the biggest factors in your score. If someone adds you as an authorized user on a long-standing, well-managed credit card, you essentially “inherit” that positive history.
How to do it:
- Ask a trusted family member or friend with a low balance and a long credit history to add you as an authorized user.
- Make sure they have a perfect payment history—if they miss payments, it could hurt your score instead.
- You don’t have to use the card! Just being on the account can help boost your score.
Pro tip: Not all credit card issuers report authorized users to the credit bureaus, so check first before asking someone to add you.
Ready to Boost Your Score & Buy a Home?
Emma’s story isn’t unique—we’ve helped thousands of first-time buyers improve their credit and qualify for better loan options. Want a game plan for your own homebuying journey? Let’s chat. Reach out today, and we’ll help you make your dream home a reality!
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