How to Improve a Low Credit Score Before Applying for a Mortgage
- Jonathan Shupe
- Apr 25
- 3 min read
Your credit score plays a major role in the mortgage process—it impacts not just whether you’ll be approved but also what kind of interest rate and loan options are available to you. The higher your score, the more flexibility you’ll have.
But what if your score isn’t where it needs to be right now? Good news: improving your credit is absolutely possible—with the right strategy, timing, and support. Let’s walk through what matters, what to focus on, and how we can help.
First: Understand What Makes Up Your Score
Credit scores are made up of five key components:
Payment History (35%) – Do you pay on time?
Amounts Owed / Credit Utilization (30%) – How much of your available credit are you using?
Length of Credit History (15%) – How long have your accounts been open?
Credit Mix (10%) – Do you have a healthy mix of credit types (cards, loans, etc.)?
New Credit (10%) – Have you recently opened or applied for new accounts?
Understanding these factors helps you focus your efforts where they’ll make the biggest difference.
Steps to Start Improving Your Credit Score
1. Review Your Credit Reports in Detail
Start by pulling your reports from all three bureaus—Experian, Equifax, and TransUnion. Look for:
Incorrect balances or accounts
Late payments that were actually on time
Accounts that don’t belong to you
Duplicate listings
You’re entitled to one free report from each bureau annually at AnnualCreditReport.com.
→ Pro tip: Disputing inaccurate information is one of the fastest ways to raise your score.
2. Lower Your Credit Card Balances
This is often the single most effective move you can make quickly. Your credit utilization ratio (how much credit you’re using vs. your total limits) should ideally be under 30%, and even better if it’s under 10%.
Example: If you have a $5,000 limit and a $2,500 balance, your utilization is 50%—which can drag your score down. Paying that down to $500 brings it to 10% and can give you a major boost.
3. Make All Payments On Time, Every Time
Set up autopay or calendar reminders. Even one missed payment can stay on your report for 7 years. Your payment history is the most important part of your score, so consistency is key.
4. Don’t Open New Accounts Unnecessarily
Every hard credit inquiry can lower your score a few points—and opening new credit can reduce the average age of your accounts. Unless we’ve discussed a specific strategy (like adding a secured card), it’s best to hold off on applying for new credit during the mortgage prep phase.
5. Keep Old Accounts Open
Length of credit history matters, so resist the urge to close older accounts—even if you’re not using them. Older accounts help build credibility.
6. Consider Authorized User Accounts or Credit Builder Tools
If your file is thin or you’re rebuilding, adding yourself as an authorized user on a trusted family member’s credit card can help. Credit builder loans or secured credit cards are also great for re-establishing positive history.
Work With Us to Create a Personalized Plan
This is where we come in. As your mortgage broker, we do more than just find the right lender—we also guide you through credit readiness. We’ll:
Pull your actual mortgage credit scores
Identify the fastest-impact areas for improvement
Create a timeline based on your homebuying goals
Re-run your credit when you’re ready to see progress
There’s no one-size-fits-all fix, but with the right strategy, we’ve seen clients raise their scores by 40–100+ points in a matter of months.
Download our Credit Repair Guide for extra insights!
Final Thoughts
You don’t need a perfect credit score to buy a home—but the stronger your score, the more options you’ll have. Whether you’re just starting to explore homeownership or you’ve been turned down in the past, we’re here to help you take confident, informed steps toward improving your credit and securing the right mortgage for your situation.
Ready to get started or have questions about your current credit situation? Reach out—we’d love to chat.
Jonathan Shupe NMLS ID# 1649211 is Manager of Shupe Lending Group NMLS ID# 2478065. Jonathan Shupe and his team of loan officers are licensed in multiple states. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders overlays on government and conventional loans. We have a reputation of being able to work with over 270 different lenders to be able to offer out clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, evenings, weekends, and holidays.
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