Credit for a mortgage

What goes into a score

The CFPB lists the factors scoring models usually weigh: your bill-paying history, your current unpaid debt, the number and type of accounts, how long they have been open, how much of your available credit you use, new applications, and whether you have had a collection, foreclosure or bankruptcy and how long ago. Most scores range from 300 to 850. A higher score usually makes it easier to qualify and can bring a better rate or terms.

Two of those factors move quickly: the balances you carry relative to your limits, and new applications. The others change slowly. A cleanup plan should therefore separate quick wins, such as paying a card down before the statement closes, from long-term habits, such as never missing a due date.

Which score a mortgage lender uses

Mortgage lenders generally pull a tri-merge report, meaning data from all three nationwide bureaus. Each bureau can produce a different score. FHA, for example, has long used the middle of three scores for each borrower and then the lowest of those across borrowers. HUD's Mortgagee Letter 2026-11 updates that methodology for case numbers assigned on or after January 1, 2027, and keeps FHA's existing minimum thresholds unchanged. Conventional, VA and USDA lenders apply their own rules and overlays.

The practical point: the number in your banking app may not be the number a lender uses. Ask each lender which score drove the quote.

Program minimums are floors, not targets

Program rules set the lowest score a loan can be approved with, and lenders often add their own higher minimums. FHA's published thresholds are a good example: a decision score of 580 or above is eligible for maximum financing, 500 to 579 is limited to 90 percent loan-to-value, and below 500 is not eligible. USDA's guaranteed program says it has no credit score requirement, yet the lender still has to see a willingness and ability to manage debt. The credit-score guide in this file walks through each program with sources.

Fix errors early

Errors are common enough that every buyer should read all three reports months before applying. Look for accounts you do not recognize, late payments you made on time, balances that were paid off, and duplicate collections. Disputes take time to resolve, and a lender may need a corrected report before it can underwrite the loan. Starting early also gives you time to rebuild if you discover a real problem.

Keep credit steady until closing

Lenders check again before closing. New debt, a new card or a large financed purchase can change your ratios or score in the final weeks. The safest plan is boring: keep paying everything on time, keep balances low, and talk to your lender before opening or closing any account.

A simple credit timeline

Six months before you apply, pull all three reports and start any disputes. Over the next three months, pay down card balances and keep every payment on time. About a month before preapproval, check the reports again. Once you apply, keep shopping lenders within the 45-day window the CFPB describes, and make no changes to your credit until after closing. The two new guides in this file, on checking your reports and raising your score, walk through each stage.

Card balances and utilization

Late payments stay on a report for years, but card balances are measured fresh each time an issuer reports. That makes utilization, the share of your available credit you are using, one of the few parts of a score you can change in the weeks before you apply. The CFPB says many experts recommend keeping it below 30 percent of your total limit, and that people with the highest scores often use less than 10 percent.

The number that counts is usually the balance on your statement, not what you owe after you pay. A card paid in full every month can still show a sizable balance. If you plan to apply soon, pay balances down before the statement closing dates, and avoid closing old cards, which removes their limits from the total. If you are already working with a lender, ask whether a rapid rescore makes sense. Only the lender can request one.

How to use this file

Start with the credit score guide, which explains which score counts and includes a small calculator for the middle-score rule. Then work through the guides on reports, rebuilding, thin credit files and inquiries. If a lender's answer surprises you, the adverse action notice they must give you explains why, and it is your best starting point for the next step.