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You don’t need perfect credit to buy a home, but a lower score can quietly cost you thousands. Improving your score may take time, so start now if you plan to buy a home within the next 360 days. The good news? Most first-time buyers are closer than they think.
We always recommend working with your lender to develop the best strategy to improve your score, but here are a few pointers to get you started! |
Why Your Credit Score Matters More Than the Purchase Price
Your credit score doesn’t just determine whether you qualify for a mortgage; it determines what you pay every single month. Even a 20–40 point improvement can unlock a better interest rate, lower your monthly payment, and save you tens of thousands over the life of your loan.
Here’s a general breakdown of where scores land:
740+ — Excellent
700–739 — Strong
640–699 — Workable, but improvement helps
Below 620 — Limited options; a plan is essential
If you’re in the 620–680 range, targeted moves can make a meaningful difference in 60–90 days.
6 Steps to Improve Your Score Before You Apply
- Don’t close old accounts. Older accounts help your credit history length. Keep them open even if you rarely use them.
- Pay down credit card balances. Aim to use less than 30% of your available credit. Under 10% is even better. This alone can quickly move your score.
- Avoid opening new credit. New inquiries temporarily lower your score. Hold off on car loans, new cards, or “buy now, pay later” accounts for at least 6–12 months before applying.
- Never miss a payment. Payment history is the largest factor in your score. Set autopay as a safeguard.
- Dispute any errors. Pull your free report at AnnualCreditReport.com and look for accounts you don’t recognize or incorrect late payments. Errors are more common than you’d think, and disputing them can produce fast results.
- Request a credit limit increase. If you’ve been responsible with a card for 6–12 months, ask for a higher limit without increasing your spending. Lower utilization = higher score.
How Long Does It Take?
Small adjustments can show up in as little as 30–60 days. More significant rebuilds typically take 6–12 months. Either way, the goal isn’t to rush; it’s to buy smart.
If your score is below 580 or you have recent collections or charge-offs, I can connect you with reputable credit professionals focused on sustainable, long-term improvement.
Ready to Know Where You Stand?
You don’t need to figure this out alone. In a quick 15-minute call, I can walk through your situation, give you an honest assessment of where you are, and help you put together a clear path forward, whether you’re ready to buy now or need a short-term plan first.
No pressure. Just clarity.
Schedule Your Free 15-Minute Consultation →