How Your Credit Score Affects Your Mortgage
Credit score is the single largest driver of your mortgage rate after the market itself. Here is how the tiers work and what actually moves a score.
Fact-checked and reviewed for financial accuracy by Priya Kannan, CFP®. Read our content review process.
Mortgage lenders typically pull all three bureaus and use the middle score. With multiple borrowers, many lenders price on the lowest middle score among them — which occasionally means it is better for one spouse to apply alone.
What the tiers are worth
| Score range | Relative pricing | Approximate monthly difference on a $360,000 loan |
|---|---|---|
| 760+ | Best available | Baseline |
| 740 – 759 | Slightly higher | +$15 – $35 |
| 700 – 739 | Moderately higher | +$45 – $95 |
| 660 – 699 | Noticeably higher | +$110 – $200 |
| 620 – 659 | Substantially higher | +$200 – $350 |
| Below 620 | Conventional generally unavailable | Consider FHA or VA |
Over thirty years, the gap between a 660 and a 760 score on the same loan commonly exceeds $50,000 in interest. Few things you can do in six months are worth more.
What moves a score fastest
- Lower utilization. Balances relative to limits are the most responsive factor. Paying revolving balances below 30 percent — and ideally below 10 percent — of limits can move a score within one or two statement cycles.
- Fix errors. Dispute inaccurate accounts, wrong balances, and duplicate collections. Bureaus must investigate, generally within 30 days.
- Never miss a payment. Payment history is the largest factor, and a single 30-day late can cost significant points.
- Stop opening new accounts. New credit lowers average account age and adds inquiries.
- Do not close old cards. Closing reduces available credit and shortens history — both hurt.
Rapid rescore
If you are already in process, lenders can order a rapid rescore — an expedited update of corrected information, usually within a few days. It cannot remove accurate negative information, but it can reflect a paid-down balance or a corrected error in time to improve your pricing.
During the loan process
- Do not apply for new credit of any kind, including store cards
- Do not finance furniture, appliances, or a vehicle
- Do not close accounts or transfer balances
- Do not make large undocumented deposits
- Do keep every account current, including anything with a small balance
Frequently asked questions
What credit score do I need to buy a house?
Conventional loans generally start around 620, FHA can go lower, and VA lenders often set their own minimums near 620. Better pricing begins around 740.
How long does it take to improve a credit score?
Utilization changes can show within one to two statement cycles. Rebuilding after a serious delinquency takes considerably longer.
Does checking my own credit hurt my score?
No. Checking your own report is a soft inquiry and has no effect.
Editorial note. This article is educational and is not financial, tax, or legal advice. Loan terms, rates, insurance costs, and tax rules vary by lender, state, and individual circumstance. Figures shown are illustrative. Confirm details with a licensed lender, tax professional, or attorney before making a decision.
