Thinking ahead to the home financing process? Your best friend, besides a hefty down payment, is a fully optimized credit score. Find out how to increase your score quickly to qualify for the best terms on your mortgage.

When you’re thinking about financing your home, you’re probably focused on saving up as much as possible for your down payment. While doing so, however, you need to put some of your available funds toward paying down debt and making sure that you are credit-worthy when it’s time to apply for your home loan. If you know that your FICO credit score is a little low, we’ve got tips to improve your credit score fast and ensure that you are fully prepared for the mortgage application process.

What is the fastest way to get a higher credit score?

There are many ways to raise your credit score and some of them can take quite a bit of time to accomplish. For instance, paying off a large amount of consumer debt is a very effective way to raise your credit score. However, it may take you several months to accomplish unless you have a sudden windfall of extra cash on hand.

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Probably the fastest way to raise your score would be by disputing an error on your credit report. For example, if you’ve paid off a balance but it is showing as delinquent, or if you have had a debt attributed to you that you never took on, you may be able to appeal to the credit reporting agency or the creditor to have the record corrected. This may raise your credit score rather quickly.

How can I raise my credit score by 100 points?

Raising your credit score is a long-term proposition and it requires a long-term commitment. However, it is possible to raise your credit score by 100 points, especially if it is currently very low. For those with higher credit scores, achieving a big jump may take far longer since there is less room for dramatic improvement. 

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Here are some ideas for making major improvements over a period of several months:

• Check your credit reports once each year for errors and have them corrected if they occur. You may obtain a free report for each of the major credit reporting agencies —  Equifax, Experian, and TransUnion — from AnnualCreditReport.com.
• Sign up with a credit monitoring service to keep an eye on your credit score and find out what activities make it go higher or lower.
• Pay off credit card debt and other commercial debt as quickly as possible. 
• When you pay off a credit account, don’t close it out. Having some accounts for a period of many years shows that you’ve been able to maintain good financial standing long term.
• Once you’ve paid them off, continue to use your credit accounts for small purchases, perhaps once a month, then pay them off immediately. This shows that you can use credit responsibly without overspending.

If you have had a major ding on your credit report — for instance, a bankruptcy or foreclosure — it will take many years for your credit to fully recover. Continue developing good financial habits and exercise patience. Your credit score will eventually bounce back. 

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In addition, talk to your lender and find out how long you will have to wait before you are considered for a mortgage. Different loan products have different recovery periods from a major financial reversal.

Can I boost my credit score overnight?

One way to quickly raise your credit score is to be made an authorized user on a credit account with someone else. Perhaps you’ll be given a company credit card by your employer, or your parents may make you an authorized user on one of their accounts. This can make you more creditworthy quickly.

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If, however, your parents have had struggles with debt, remember that becoming an authorized user on their account could open you up to negative reporting. Make sure that any account you are authorized on follows the same good credit habits you’re developing.

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How fast can you realistically raise your credit score?

Generally, it takes a month or two for your credit report to reflect recent activity, whether positive or negative. This is why it’s important to start working on optimizing your credit score well before you are ready to go home shopping. Make consistent, ongoing improvements your goal and take a combination approach rather than looking for a magic bullet that will raise your credit score quickly.

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Continue to put your good credit habits to use

Once you’ve raised your credit score and are ready to apply for your mortgage, it’s time to make sure that you finish strong by continuing to implement smart credit use throughout your purchase and beyond. Here are some things to keep in mind.

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Maximize your down payment

Remember, the higher your down payment, the better the terms on your home loan are likely to be. Make sure that while you’re improving your credit by paying down outstanding debt, you’re also feeding your savings account for the best possible down payment.

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Limit new credit applications

You’ve probably got a vision of a houseful of new furniture or a new car or truck in the driveway of your new home. Put off those plans until after the closing. You could throw off your debt-to-income ratio if you take on new credit at this point. You may even find that your pre-approval is invalidated if you take on too much new debt.

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Avoid late payments

Similarly, make sure that you continue to make on-time payments for your remaining debt throughout the home application process. This will help to ensure that your credit score stays high and your financing stays on track.

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Cluster mortgage loan applications

Your credit score takes a minor hit every time you apply for new credit, but if you cluster your credit applications together, the credit bureaus will recognize them as related inquiries. Therefore, if you’re looking at your eligibility with a number of lenders in order to comparison shop for your home loan, make sure you’re doing so within a one to two-week period.

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