Why it matters
Your credit score and debts decide which loans you qualify for and the rate you pay. A small improvement in your score before you apply can lower your rate for the life of the loan.
What to do
- Get your free credit reports from all three bureaus at AnnualCreditReport.com and check them for mistakes.
- Find out your credit score. Many banks and card issuers show it for free.
- Add up your monthly debt payments: car, student loans, cards, other loans.
- Work out your gross monthly income, before tax.
- Dispute any errors on your reports. Corrections can take 30 days or more.
Checklist
Ticks are saved on this device.
Common mistakes
- Opening new credit cards or financing a car right before applying for a mortgage.
- Closing old card accounts, which can lower your score.
- Assuming your score is fine without checking.
General information, not financial or legal advice. Rules vary by state; confirm with your lender, agent or attorney.
Frequently asked questions
What credit score do I need to buy a house?
It depends on the loan. FHA loans allow 3.5% down with a score of 580 or higher. Conventional loans usually need at least 620. Higher scores get better rates.
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