How to Build Your Credit Before Buying a Home
If you’ve been dreaming about buying a home but feel nervous about your credit, you’re not alone. I talk to so many people who are ready for that next chapter but aren’t sure where to start when it comes to improving their credit score. The good news is, it’s absolutely possible to build or repair your credit with a little consistency and the right plan.
So, grab a cup of coffee, and let’s walk through it together.
Step 1: Know Where You Stand
Before you can improve your credit, you need to know what your score looks like. Start by pulling a free copy of your credit report from one of the major bureaus: Experian, TransUnion, or Equifax. Review it carefully to check for any errors or outdated accounts.
If you find mistakes, don’t panic. You can dispute them directly through the bureau’s website, and once corrected, your score can often improve quickly.
Step 2: Pay Bills on Time
This one may sound simple, but it makes the biggest difference. Your payment history is the largest factor in your credit score. Set reminders, use autopay, or do whatever it takes to make sure your bills are paid on time every month.
Even one late payment can drop your score, so staying consistent matters. Lenders love to see reliability—it tells them you’ll handle a mortgage responsibly.
Step 3: Lower Your Credit Utilization
Credit utilization is the fancy term for how much of your available credit you’re using. Try to keep that number below 30 percent. For example, if you have a credit card with a $1,000 limit, aim to keep your balance under $300.
Paying off smaller balances can give your score a nice boost. If possible, make payments more than once a month to show consistent activity and lower your average balance.
Step 4: Avoid Opening or Closing Too Many Accounts
It’s tempting to open a new store credit card or close an old one you don’t use anymore, but be careful. Too many new accounts or sudden changes can temporarily lower your score. If you plan to buy a home soon, it’s best to keep your credit stable and avoid any big shifts.
If you have old accounts in good standing, keep them open. A longer credit history helps your score.
Step 5: Become an Authorized User
If you have a trusted family member or friend with good credit, ask if they’ll add you as an authorized user on one of their credit cards. You don’t even need to use the card; just being added to the account can help strengthen your credit history.
Step 6: Monitor Your Progress
As you make these changes, keep an eye on your score each month. You can use free tools through your bank or credit card company to track your progress. Watching that number rise little by little can be motivating and remind you how close you are to your goal.
Step 7: Work with a Trusted Lender Early
Even if you’re not quite ready to buy, it’s smart to talk with a lender ahead of time. A good lender can run your credit, review your income, and give you specific advice on what steps will make the biggest impact.
When you work with me, I connect you with local lenders who truly care about helping clients get ready. They’ll guide you through everything so that when the time comes to buy, you’ll be confident and prepared.
Building credit takes time, but every small step adds up. Whether you’re six months or two years away from buying, the effort you put in now will pay off later when you get those keys in your hand.
If you’re ready to start planning your homeownership journey, I’d love to help you put together a personalized plan that fits your goals and timeline.