Credit Score Guide
Your credit score is the single biggest factor in the mortgage rate you'll get. A higher score means lower rates, which saves you tens of thousands over the life of a loan.
Score Ranges
800-850
Exceptional— Best rates available. Lenders compete for your business.
740-799
Very Good— Qualifies for best conventional rates. No issues with approval.
670-739
Good— Solid rates available. Most lenders will approve.
580-669
Fair— FHA loans available. Higher rates on conventional.
300-579
Poor— Limited options. May need to rebuild credit first.
What Impacts Your Score
Payment History
35%On-time payments are the single biggest factor. Even one 30-day late payment can drop your score 50-100 points.
Credit Utilization
30%Keep balances below 30% of limits (under 10% is ideal). This is calculated per card AND overall.
Length of Credit History
15%Average age of accounts matters. Don't close old cards, even if unused.
Credit Mix
10%Having different types (credit cards, auto loan, student loan) helps. Don't open accounts just for mix.
New Credit
10%Each hard inquiry drops score 5-10 points. Multiple mortgage inquiries within 14-45 days count as one.
How to Improve Your Score
- Pay all bills on time — set up autopay for minimums
- Pay down credit card balances below 30% utilization
- Don't close old credit cards — they help average age
- Don't open new credit accounts before applying for a mortgage
- Dispute any errors on your credit report (annualcreditreport.com)
- Become an authorized user on a family member's old, well-managed card
- Ask for credit limit increases (without hard pull) to lower utilization
- Avoid co-signing loans for others
Before Applying for a Mortgage
- • Check your free credit reports at AnnualCreditReport.com (all 3 bureaus)
- • Lenders typically use the middle of your three FICO scores
- • Don't make any major financial changes (new car, credit cards, job change) while applying
- • Rate shopping? Multiple mortgage inquiries within 14-45 days count as a single inquiry