A high credit score is your ticket to the best mortgage rates. In 2025, even a small difference in your score can save you $50,000 or more over the life of a 30-year home loan. Lenders see a high score as proof that you are a reliable borrower. If your score is below 740, follow this checklist to boost your “creditworthiness” before you start house hunting.
The Power of the “Golden Rule”
The single most important factor in your score is payment history, which makes up 35% of the total. One late payment can stay on your report for seven years.
- Automate Everything: Set up auto-pay for at least the minimum amount on every card and loan.
- Catch Up Fast: If you are behind on any accounts, bring them current immediately.
- Spot Errors: 1 in 5 people have errors on their credit report. Check your free report from Equifax, Experian, or TransUnion and dispute any “late” marks that are incorrect.
Manage Your “Utilization Ratio”
Your credit utilization—how much of your limit you actually use—is the second biggest factor (30%).
- The 30% Target: If your total credit limit is $10,000, try to keep your balance below $3,000.
- The “Invisible” Boost: You can improve this ratio by asking for a limit increase on your current cards. If they raise your limit from $5,000 to $10,000 but you don’t spend more, your utilization drops instantly.
- Don’t Close Old Cards: Even if you don’t use a card, keep it open. The age of your accounts helps your score.
What Not to Do Before Applying
- No New Debt: Don’t buy a new car or apply for new credit cards 6–12 months before a mortgage. Every “hard inquiry” can lower your score slightly.
- Avoid Large Purchases: Maxing out a card for a new sofa right before a home loan can signal “financial stress” to a lender.
Next Step: Your dream home is waiting. Start by checking your score for free today and using these tips to push it into the “Excellent” range.