What can a borrower do to improve their credit score prior to applying for a mortgage?

Paying down existing debt and making payments on time is an effective strategy for improving a borrower's credit score before applying for a mortgage. Credit scores heavily rely on payment history and credit utilization, which is the ratio of credit used compared to available credit. By reducing existing debt, the borrower can lower their credit utilization ratio, demonstrating to lenders that they manage credit responsibly. Additionally, making timely payments reinforces a positive payment history, which is a crucial component in determining credit scores.

This approach showcases financial reliability and helps build a stronger credit profile, leading to better mortgage terms or lower interest rates. In contrast, the other options presented would not positively impact credit scores. For example, making late payments would damage payment history, while opening several new credit accounts can decrease the average age of credit and temporarily lower the score, and closing old accounts can reduce overall credit availability and potentially increase utilization rates.