2 Ways to Quickly Improve Your Credit Score Before Getting a Mortgage

Taking these steps could potentially leave you with a much higher credit score.

Most people who plan to buy a home need a mortgage.

Mortgage loans tend to be very large, with homeowners borrowing hundreds of thousands of dollars. And most mortgages are paid off over 15 years, 20 years, or 30 years. That means borrowers pay interest on their large loans for a very long time.

For all of these reasons, it's important to have the highest possible credit score before applying for a home loan. That's because your credit could impact the interest rate you're charged. And even a small difference in the rate that you pay could end up costing you tens of thousands of dollars in extra interest.

Most steps you'll take to improve your credit can take time. This can be a problem if you're trying to buy a home now.

Fortunately, there are ways to build credit fast. In fact, here are two that you may not have heard of. While they won't work for everyone, they may be worth trying. Keep reading to learn more about writing goodwill letters and becoming an authorized user.

1. Write a goodwill letter to get negative info removed

Even a single late payment on your credit record can cause a dramatic decrease in your credit score. And if you have several late payments, this could be enough to disqualify you from the most favorable mortgage rates.

If you find yourself looking at one or two late payments from different creditors on your credit history, you may have an option to get those removed from your record and quickly bring up your score. You can simply write a goodwill letter and request that the creditors take the black marks off your record.

Now, this won't work in every case, as many creditors won't do this when you were legitimately late. However, if you're still a customer and have paid on time in most situations but just had one or two issues, your creditor may be more than willing to work with you.

Or if you still have an outstanding balance, the creditor may agree to remove the record of a late payment if you strike a deal to pay your balance in full in exchange for them doing so.

The disappearance of late payments from your record could be the single fastest and best way to improve your credit if you're able to make it happen.

2. Ask a loved one with good credit to make you an authorized user

If you have a family member or friend with a solid credit history, they might be able to help improve your score. Ask if they would consider adding you as an authorized user on one of their accounts that's in good standing.

That would mean that the account shows up on your own credit report. You'd get the benefit of their on-time payment record, and their older accounts would help your average age of account history, as a longer credit record is better than a shorter one. And they don't even have to give you access to the credit card to do that.

This won't help as much if you have a lot of negative information on your credit record, but it can still make a difference. And it can definitely help you quickly build a credit profile that will impress mortgage lenders if you don't have a long credit history of your own yet.

Both of these steps could make a big difference in your credit score. Give them a try if you're hoping to get a mortgage ASAP and just need a little extra help to earn a great rate.