You should start to improve your credit history long before you are ready to buy a home. As soon as you start using credit cards, do your best to make timely payments and keep your balances low. This will help build up your credit score.
If you are preparing to buy a home for yourself, be sure to take the time now to improve your credit history so you can qualify for a mortgage. This means paying off any debt before it becomes too late, including car loans, student loans, or medical debt. You should also lower your credit card balances so you have more available credit available.
The following are some other steps that can help improve your credit score:
Checking your free annual credit report online
Paying bills on time
Keeping the balances on all of your revolving accounts low
Here are the main points which will affect your credit history:
Your credit can affect the mortgage rates lenders are willing to give you when you buy a home, so good credit can save you a lot of money over time.
If you're wondering how to prepare your credit for a mortgage, you should start now.
Make sure you have less hard enquiries (less than 3) in last 1 year.
You'll want to check your credit reports and scores, pay down any credit card balances, and consider asking a trusted family member to be added as an authorized user to a card with a strong credit history.