# Building Credit for Home Buyers: A Practical Roadmap
Your credit score determines mortgage rates, loan approval odds, and down payment requirements. Lenders view borrowers with scores below 620 as high-risk. Those above 740 access the best rates. Here's how to strengthen your credit before applying for a mortgage.
**Check your credit report first.** Request free reports from Equifax, Experian, and TransUnion at annualcreditreport.com. Errors happen. Dispute any inaccuracies directly with the credit bureaus. Removing false late payments or accounts can boost your score by 50 to 100 points.
**Pay bills on time.** Payment history accounts for 35 percent of your score. Set up automatic payments to avoid missed deadlines. One 30-day late payment tanks your score. Older negative marks hurt less than recent ones.
**Lower your credit utilization ratio.** Keep balances below 30 percent of your credit limits. A $5,000 credit card limit? Stay under $1,500 in charges. Pay down existing debts aggressively. This shows lenders you manage credit responsibly.
**Become an authorized user.** Ask a family member with excellent credit to add you to their account. Their payment history transfers to your report. Choose someone with low balances and spotless payment records.
**Build diverse credit types.** Lenders reward borrowers who handle multiple accounts. Add a secured credit card, auto loan, or credit-builder loan alongside existing credit cards. Don't open too many accounts at once, which signals desperation.
**Wait before applying for a mortgage.** New credit inquiries lower your score temporarily. Wait six months after major credit improvements before meeting with a lender. This timeline also gives you time to save for a larger down payment