Buying a home can come with many hurdles—but it shouldn’t be a difficult battle. For many prospective homebuyers, one of the biggest challenges is credit score requirements. Your credit score is a crucial factor in your ability to be approved for a loan, and helps determine the interest rate of your loan. The good news for veterans is that VA loans typically have looser credit requirements. However, it’s still important to get your credit score in the best possible shape so that you can get the best loan for your dream home.
At Commander Mortgage, we specialize in helping veterans and military families achieve the dream of homeownership through tailored VA loans. That’s why we’ve put together this guide to improving your credit score to buy a home as a veteran. Find our top tips below.
The first step to improving your credit score is knowing what your starting point is. You can request a free copy of your credit report from all three major bureaus—Equifax, Experian, and TransUnion—at AnnualCreditReport.com.
When reviewing your credit report, it’s important to keep an eye out for outdated or duplicated accounts, incorrect reports of late payments, and unauthorized activity. If any of these errors are present, you should file a dispute—even small corrections could make a difference in boosting your credit score.
Debt can take a major toll on your credit score, which is why reducing your credit utilization can be a game-changer. Your credit utilization is the percentage of your available credit you’re currently using. To lower this number, you should focus on paying off high-interest credit cards first.
You should also make efforts to avoid maxing out any one card by staying below 30% of your limit, and spread balances across cards rather than loading one card up. These financial habits will not only improve your credit score, but also strengthen your position as a buyer, bringing you one step closer to your dream home.
When life gets in the way, it’s easy to miss payments. But if you want to keep your credit score in great shape, it’s crucial to make every payment on time. As it turns out, payment history is the single largest factor in your credit score, and missed payments can stay on your report for up to seven years.
It’s a good idea to set up automatic payments or calendar reminders so you never miss a beat. And don’t be afraid to contact creditors if you’re struggling; there are hardship plans that can help. It’s never too late to turn your credit around!
It can be tempting to apply for a new credit card or loan, but each time you do this, your credit score will take a small hit. The lower score is usually temporary, but it’s important to keep in mind that multiple credit inquiries over a short time could be a red flag to mortgage lenders.
For this reason, you should hold off on opening any new accounts within 6-12 months of when you plan to buy a new home.
Improving your credit score can feel like an overwhelming task—but you don’t need to make it a solo mission. There are many trusted resources available, including nonprofit credit counselors, financial education tools, and guidance from experienced mortgage professionals.
Start by reviewing your credit report. From there, you can ask questions if you’re unsure of how something might affect your score. Always feel free to seek out reputable advice from organizations that support veterans and first-time homebuyers!
Remember, building better credit is a process — but with the right support, it’s one you can absolutely take on with confidence.
Whether you're ready to buy now or just starting to prepare, improving your credit is a smart move. At Commander Mortgage, we’re here to help veterans like you purchase a home with ease and confidence. Our team will review your unique situation, explain your VA loan options, and guide you toward the best path forward—credit questions included.
Contact Commander Mortgage today for a free consultation and personalized support from a lender who understands your service and your goals. Because helping you isn’t just our job. It’s our privilege.
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