Credit Confidence Guide
Buying a home can feel overwhelming, but your credit does not have to be a mystery. Use this quick guide to understand what lenders look at and what simple steps may help you feel more prepared.
Higher scores may help buyers qualify for better loan terms.
What is in a credit report?
Payment History
Whether bills are paid on time and in full.
Derogatory Marks
Items like bankruptcies, foreclosures, judgments, evictions, or court proceedings may affect credit.
Credit Utilization
How much revolving credit is being used compared with available credit.
Length of History
How long accounts have been open and available for lenders to review.
Credit Bureaus
Equifax, Experian, and TransUnion gather data used to compile credit reports.
Lender Review
A lender may request reports from one or more bureaus to evaluate lending risk.
What affects a FICO score?
These percentages are approximate. A credit score involves an algorithm with several factors.
Quick Credit Checkup
Helpful questions to ask your lender
Which credit bureaus will you pull from?
Lenders may use one or more of Equifax, Experian, and TransUnion.
What score range do I need for the loan programs available to me?
Loan options can vary, so ask what programs may fit your situation.
Would paying down balances help my options?
Credit utilization can matter, so ask before making big moves with your money.
Should I avoid opening new accounts right now?
New credit can affect your profile, especially during the homebuying process.
You are not stuck
You can work on improving your credit over time. Paying bills on time, keeping credit card balances low, and avoiding too many new accounts may gradually help your score. Even if your score is not where you want it to be today, there can still be room for progress.
Have real estate questions? I am happy to help you understand the homebuying process and connect you with trusted professionals when needed.
This microapp is for general informational and educational purposes only and is not legal or financial advice. Before taking action based on this information, consult with the appropriate professionals. Use or reliance on this information is solely at your own risk and discretion.