What can a borrower do to improve their credit score before applying for a mortgage?

Paying bills on time is one of the most effective ways a borrower can improve their credit score before applying for a mortgage. Credit scores take into account payment history as a significant factor, and consistently making payments by their due dates demonstrates responsible financial behavior. This positive record not only helps to improve the score but also establishes trust with potential lenders, as timely payments indicate that a borrower is likely to meet future obligations.

Improving credit scores through on-time payments can lead to better mortgage terms, such as lower interest rates, which can ultimately save the borrower money over the life of the loan. It is particularly important for borrowers to focus on this aspect, especially in the months leading up to applying for a mortgage, as it can have a direct impact on the options and rates available to them.

Other approaches, such as maximizing credit usage, closing old credit accounts, or opening new credit lines, could have negative effects on credit scores or complicate a borrower's financial profile at the time of application, which is why they are not advisable strategies for improving credit before seeking a mortgage.