Understanding Credit Score Ranges
FICO scores range from 300–850. Your score directly affects the interest rate you're offered — even a small difference can mean thousands over the life of your loan.
Minimum scores for common loan types: Conventional requires 620+, FHA allows as low as 500 (with 10% down) or 580+ (with 3.5% down), VA and USDA typically require 640+.
What Makes Up Your Score?
The most important factor. Late payments, collections, and bankruptcies significantly lower your score. Always pay on time — even the minimum.
How much of your available credit you're using. Keep balances below 30% of your credit limit — below 10% is even better for top scores.
Older accounts help your score. Avoid closing old credit cards — even ones you don't use often.
Having a variety of credit types (credit cards, auto loans, etc.) can help — but don't open accounts just for this reason.
Each new credit application triggers a hard inquiry, which can temporarily lower your score. Avoid applying for new credit before getting a mortgage.
How to Improve Your Score
Pay Bills On Time
Set up autopay for at least the minimum payment on all accounts. One missed payment can drop your score by 50–100 points.
Reduce Balances
Pay down credit card balances to below 30% of their limit. If you can get under 10%, you'll see the best score improvements.
Check for Errors
Get your free credit report at AnnualCreditReport.com and dispute any errors. Inaccurate negative items can unfairly drag down your score.
Don't Close Old Accounts
Closing a card reduces your available credit and shortens your credit history — both hurt your score. Keep old accounts open, even if unused.