How to Improve Your Credit Score Before Applying for a Mortgage
Your credit score plays a big role in whether or not you’ll get approved for a mortgage and how good the interest rate will be. If your credit score isn’t where you’d like it to be yet, don’t worry — there’s still time to make improvements. Below are some easy steps to help raise your score so you can start your homebuying journey on the right foot.
1. Check Your Credit Score and Report
First things first, know where you stand. You can check your credit score for free at various websites (like Credit Karma or Experian), or through your bank or credit card provider. You’ll also want to take a look at your credit report.
Mistakes on your credit report are more common than you might think, if you find any discrepancies, dispute them. A clean report is the foundation of a good credit score.
2. Pay Your Bills On Time
Your payment history makes up a large portion of your credit score. So, making sure you pay all your bills on time (credit cards, utilities, loans, etc.) is one of the most important things you can do to improve your score.
Set up reminders or automatic payments to make sure you never miss a due date. Consistency is key!
3. Reduce Your Debt
Lenders like to see that you can manage your debt responsibly. Try to pay down your credit card balances and other loans as much as possible.
Aim to keep your credit utilisation ratio (the amount of credit you’re using compared to your credit limit) below 30%. For example, if you have a credit card with a £1,000 limit, try not to carry a balance higher than £300. This shows lenders that you’re not over-relying on credit.
If you can’t pay off the balance all at once, try to pay more than the minimum monthly payment to reduce it faster.
4. Avoid Opening New Credit Accounts
When you apply for a new credit card, it results in a hard inquiry, which can temporarily lower your score. Plus, new accounts can shorten your average account age, another factor in your credit score.
5. Keep Old Accounts Open
Length of credit history matters. If you have old credit accounts that you don’t use much, keep them open. Closing them can reduce your overall credit limit and increase your credit utilization ratio. Just make sure there’s no annual fee that you’re paying unnecessarily.
6. Consider a Secured Credit Card
If you have little or no credit history, it can be tough to get approved for a traditional credit card. But a secured credit card might be a good option. With a secured card, you deposit a certain amount of money as collateral, and you get a credit line equal to that amount.
Using this card responsibly — making small purchases and paying it off on time — can help you build or improve your credit history.
7. Monitor Your Credit Regularly
Keep an eye on your credit score and report regularly. There are plenty of free tools and apps that can help you track your progress. This way, you can catch any issues early and stay on top of your credit health.
Final Thoughts
Improving your credit score takes time and patience, but it’s worth the effort. Not only will a higher score increase your chances of being approved for a mortgage, but it can also help you qualify for a lower interest rate — which means you’ll pay less over the life of your loan.
By checking your score, paying down debt, making payments on time, and avoiding new credit, you can make meaningful improvements. Give yourself time, stay consistent, and soon enough, you’ll be ready to take that big step toward owning your own home.
If you have any questions, feel free to contact us and we’ll be more than happy to help.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Approved by In Partnership FRN 190859 March 2025.
