Your credit score plays a huge role in determining whether you qualify for a mortgage and what interest rate you’ll receive. A higher credit score can mean lower monthly payments, better loan terms, and even the difference between approval and denial. If you’re planning to buy a home, taking steps to improve your credit score can put you in a stronger financial position. Here are some actionable strategies to boost your credit and get mortgage-ready.

1. Check Your Credit Report for Errors

Mistakes on your credit report can drag down your score. Request a free credit report from the three major credit bureaus—Equifax, Experian, and TransUnion—at AnnualCreditReport.com. Look for errors such as incorrect balances, duplicate accounts, or unauthorized inquiries, and dispute any inaccuracies immediately.

2. Pay Your Bills on Time

Payment history makes up 35% of your credit score, making it the most significant factor. Set up automatic payments or calendar reminders to ensure you never miss a due date. Even one late payment can negatively impact your score, so staying consistent is key.

3. Reduce Your Credit Utilization Ratio

Your credit utilization ratio—the amount of credit you’re using compared to your total available credit—should ideally be below 30%. Here’s how to lower it:

  • Pay down high credit card balances.
  • Increase your credit limit (only if you can manage it responsibly).
  • Avoid making large purchases on your credit cards before applying for a mortgage.

4. Avoid Opening New Credit Accounts

While building credit history is important, opening multiple new accounts in a short period can lower your score and signal risk to lenders. Each new credit inquiry can temporarily reduce your score, so only open new accounts if necessary.

5. Keep Old Accounts Open

The length of your credit history affects 15% of your credit score. If you have old, unused credit accounts with a good payment history, keep them open to maintain a longer credit history and improve your overall credit mix.

6. Diversify Your Credit Mix

Lenders like to see a mix of credit types, such as credit cards, auto loans, and installment loans. If you only have credit cards, consider adding a small personal loan (only if needed) to show you can handle different types of credit responsibly.

7. Pay Off Debt Strategically

Prioritize paying down debts with the highest interest rates first (avalanche method) or tackle smaller debts first to gain momentum (snowball method). Either approach can help reduce debt and improve your credit score over time.

8. Become an Authorized User

If you have a trusted family member with a well-maintained credit card account, ask to be added as an authorized user. Their positive payment history can help boost your credit score without requiring you to use the card.

9. Use Credit-Boosting Tools

Services like Experian Boost can add on-time payments for utilities and streaming services to your credit report, potentially increasing your score.

10. Be Patient and Consistent

Improving your credit score doesn’t happen overnight. Lenders typically want to see at least six months of good financial behavior before considering a mortgage application. Stick to these strategies, and over time, you’ll see positive results.

Ready to Apply for a Mortgage?

At BrightSide Lending, we help borrowers in Michigan navigate the home loan process with expert guidance and personalized solutions. If you’re working on improving your credit or are ready to start your homeownership journey, contact us today!