Credit Score Ranges and What They Mean for Mortgages

Written By J. Es .

Here’s a breakdown of common credit score ranges and how they typically affect your mortgage options:

  • Excellent (740-850): You’ll qualify for the best mortgage rates and loan terms. Lenders see you as a low-risk borrower.

  • Good (700-739): You’ll still get competitive rates and loan options, though they may not be as favorable as those for borrowers with excellent credit.

  • Fair (640-699): You’ll likely qualify for a mortgage, but your interest rates will be higher. FHA loans may be a good option if your score is in this range.

  • Poor (580-639): You may be eligible for certain loan programs, like FHA loans, but your interest rates will be higher, and you may need to make a larger down payment.

  • Very Poor (579 and below): It will be challenging to qualify for a mortgage, and if you do, expect significantly higher rates and stricter loan terms.

Big Mike’s Tip:
"If your credit score isn’t where you want it to be, don’t panic! There are steps you can take to improve it, and I can help guide you through the process to make sure you’re in the best position when you’re ready to apply for a mortgage."

How to Improve Your Credit Score Quickly

If you’re looking to improve your credit score before applying for a mortgage, here are some actionable steps you can take:

1. Pay Your Bills on Time

Payment history accounts for 35% of your credit score, so making sure you pay all of your bills on time is one of the most effective ways to boost your score. Set up reminders or automatic payments to avoid missed or late payments.

2. Reduce Your Credit Card Balances

Your credit utilization ratio—the amount of credit you’re using compared to your total available credit—also plays a big role in your credit score. Try to keep your credit utilization below 30%. Paying down your credit card balances is one of the quickest ways to improve your score.

3. Avoid Opening New Lines of Credit

Every time you apply for new credit, it results in a hard inquiry on your credit report, which can temporarily lower your score. Avoid applying for new credit cards or loans while you’re preparing for a mortgage.

4. Check for Errors on Your Credit Report

Errors on your credit report, like incorrect account information or fraudulent activity, can hurt your score. Request a copy of your credit report and dispute any inaccuracies with the credit bureaus to clean up your report.

5. Keep Old Accounts Open

The length of your credit history makes up 15% of your score, so don’t close old credit accounts, even if you’re not using them. Having long-standing accounts shows lenders that you have a stable credit history.

Big Mike’s Tip:
"Improving your credit score can take time, but even small changes can make a big difference. Focus on paying down debts, keeping your balances low, and staying on top of your bills to see a steady improvement."

Take the First Step with a Free Prequalification from Big Mike

Your credit score is a key factor in getting the best mortgage rate and loan terms, but it’s not the only one. Big Mike can help you understand your credit situation, offer personalized advice on how to improve your score, and guide you through the mortgage process.

Whether your credit is excellent or needs a little work, Big Mike will help you get the best possible mortgage for your situation. Contact Big Mike today for a free prequalification and expert advice on boosting your credit score and securing your dream home.

Your credit score doesn’t have to stand in the way of homeownership. With the right guidance and a few strategic moves, you can improve your score and qualify for better rates. Let Big Mike help you take that first step!


J. Es .