How to Improve Your Credit Score Before Applying for a Mortgage
How to Improve Your Credit Score Before Applying for a Mortgage
If you're planning to apply for a mortgage in 2025, improving your credit score is one of the most powerful moves you can make. The difference between an average and a great score could mean tens of thousands saved over the life of your mortgage.
But here’s the thing: most people wait too long. Your score isn't something you fix overnight. It’s something you build—deliberately, with a few small changes that compound over time.
Let’s walk through the most practical and high-impact ways to boost your credit before you apply for a mortgage.
1. Use Less Than 30% of Your Credit Limit
Even if you pay off your credit cards in full every month, your score can still take a hit if you’re using too much of your available credit.
Credit bureaus care about usage ratio.
If your credit limit is $10,000 and you’re consistently spending $7,000—even if you pay it off—it looks risky.
Fix it:
- Keep usage under 30% of your total limit. Under 20% is even better.
- Ask for a credit limit increase (and don’t spend more). A higher limit lowers your usage ratio automatically.
This one step alone can move your score 30–50 points in a matter of weeks.
2. Automate All Your Bill Payments
One missed payment—even just by a few days—can drop your score and stick on your report for two years. Yes, really.
You don’t want to be fixing late payments while trying to qualify for a mortgage.
Fix it:
- Set up auto-pay for your credit cards, utilities, phone bill, car payments—anything that reports to the credit bureau.
- Give yourself a buffer. Set due dates for a few days before they’re actually due.
When lenders pull your report, they’re not just looking at your balance—they're asking: Do you pay on time, every time?
3. Don’t Close Old Credit Accounts
It sounds smart: “I’m not using this card, I’ll just close it.” But this can backfire.
Why? Because part of your score is based on the age of your credit history. The longer your accounts have been open (and in good standing), the better.
Closing old cards shortens your average credit history and increases your utilization ratio. That’s a double hit.
Fix it:
- Keep old accounts open—even if you don’t use them often.
- Use them occasionally for small purchases and pay off automatically.
Old credit is good credit.
4. Check for Errors on Your Credit Report
You’d be surprised how many people are penalized for mistakes they didn’t make.
Old accounts still showing as active. Payments marked late that were on time. Accounts you never opened.
Fix it:
- Get a free credit report from both Equifax and TransUnion.
- Look closely. Dispute any errors as soon as you find them—it can take weeks to process.
Don’t assume your credit report is accurate. Verify it.
5. Avoid New Credit Applications
When you apply for new credit—like a car loan, store card, or line of credit—your score can dip slightly due to a “hard inquiry.”
But here’s the real issue: lenders may see multiple new applications as a red flag. It suggests you’re taking on new debt right before a major financial commitment.
Fix it:
- Don’t apply for any new credit for at least 3–6 months before applying for a mortgage.
- Focus on strengthening your existing credit profile instead.
In the eyes of a lender, stability is strength.
Final Thoughts
Improving your credit score is less about “hacking the system” and more about showing lenders that you’re consistent, trustworthy, and low risk.
These five strategies—done right—can push your score into a better range and give you access to better mortgage rates, better lenders, and better options.
At Anton Mortgage, we work with clients across Ontario to make sure their credit is working for them—not against them—before they apply. We’ve helped clients go from denied to approved, just by doing the groundwork upfront.
💬 Want to see where you stand?
We’ll walk you through your credit report, help you build a game plan, and make sure you're mortgage-ready.