Improving your credit score is a critical step in securing a mortgage with favorable terms.

Here are some steps you can take to boost your credit score:

1. Check your credit report: The first step in improving your credit score is to check your credit report for errors. You can request a free credit report once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). If you spot any errors, you should dispute them with the credit bureau.
2. Pay your bills on time: Payment history is the most significant factor affecting your credit score, so it’s essential to pay your bills on time. Set up automatic payments or reminders to ensure that you never miss a payment.
3. Reduce your credit utilization: Your credit utilization ratio is the amount of credit you use compared to your credit limit. Aim to keep your credit utilization below 30% of your available credit. For example, if you have a credit limit of $10,000, try to keep your balance below $3,000.
4. Don’t close old credit accounts: Closing old credit accounts can negatively impact your credit score. Keep your oldest accounts open and active, even if you’re not using them.
5. Apply for credit sparingly: Every time you apply for credit, it can lower your credit score slightly. Try to limit your credit applications to those you really need, such as a mortgage or car loan.
6. Consider a credit builder loan: A credit builder loan is a type of loan designed to help people build or rebuild their credit. With a credit builder loan, you make regular payments, and the lender reports your payments to the credit bureaus, helping to improve your credit score.

Improving your credit score takes time, but with patience and persistence, you can achieve your goal of securing a mortgage with favorable terms.