One important way is to never miss a credit card payment. If you find it hard to remember the due date, set up an automatic payment plan that will at least pay the minimum amount due. This will help to ensure no late payments and you will avoid the fees that go with it.
Do you have credit cards you no longer use? If so, contact the companies and cancel the cards. Having multiple accounts open might make a lender think you are allowing yourself too much available credit which could put yourself in economic danger. It’s not a good idea, however, to cancel your oldest credit card because this will show a lender that you have a longer credit history.
Obtain a copy of your credit report before you go ahead and apply for your loan. Every 12 months you are legally entitled to one free copy of your credit report so take advantage of this. Finding out your credit report ahead of time will allow you to be prepared ahead. Sometimes a credit report might contain an error that could affect your loan application. If you find this error first it would enable you to have the issue fixed before you start the application process.
Buying a home is a huge decision to make and you will want to give yourself the best chance of being approved for a mortgage. Trying to improve your credit report will help you to be better prepared to go through the process.