What Is Credit Score?

Your credit score is a 3-digit number between 300 and 850 that summarizes how reliably you repay debt. Mortgage lenders use it as the single biggest factor in deciding whether to approve your loan and what interest rate to offer.

A borrower with a 760 score might lock a 6.5% rate on a $350,000 loan, while a 620-score borrower could see 7.75% or higher — adding roughly $300 more per month. FHA loans accept scores as low as 580 with 3.5% down, while most conventional loans require at least 620. Scores above 740 typically unlock the best rates and lowest PMI premiums.

Key Facts

• Score range: 300–850, with 670+ generally considered “good”
• FHA minimum: 580 for 3.5% down; 500–579 requires 10% down
• Conventional minimum: Typically 620, though 740+ gets the best pricing
• Rate impact: A 100-point difference can mean 0.5%–1.0% higher or lower interest rate
• Models used: Most lenders pull FICO scores from all three bureaus — Equifax, Experian, and TransUnion
• Qualifying score: Lenders use the middle score of three (or the lower of two)

Frequently Asked Questions

What credit score do I need to buy a home?

You need at least a 580 for an FHA loan with 3.5% down, or 620 for most conventional loans. VA and USDA loans have no official minimum, but most lenders want 580–620. Higher scores earn lower rates and smaller insurance premiums.

How can I raise my credit score before applying?

Pay all bills on time, reduce credit card balances below 30% of your limits, and avoid opening new accounts. Checking your credit reports for errors and disputing inaccuracies can also produce quick gains — some borrowers see 20–40 point improvements in 60–90 days.

Does checking my credit score hurt it?

No. Checking your own score is a “soft inquiry” and has zero impact. When a lender pulls your credit for a mortgage application, that “hard inquiry” may lower your score by a few points, but multiple mortgage inquiries within a 14–45 day window count as a single pull.