Marko Geber/Getty Images Show We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. Since the beginning of the year, mortgage rates have risen — and that means home loans are becoming more expensive. Monitoring and maintaining a healthy credit score is more important than ever because it will help you secure a lower interest rate. There’s just one problem. There are so many different credit scores and the ones mortgage lenders typically use aren’t as easily accessible. “Unlike any other lending environment, mortgage lenders are required to use a specific brand and generation of credit score,” says credit expert John Ulzheimer, formerly of FICO and Equifax. The free credit score you get through your bank probably isn’t the same one your mortgage lender uses to determine the interest rate you qualify for. Pro TipTo get the best idea of which credit score your mortgage lender uses, you have to check your score through MyFICO.com, which is a paid service. As you prepare to buy a home or refinance your existing mortgage, here are the credit scores that matter — and what you can do to make sure your scores are as high as possible. What Credit Score Do Mortgage Lenders Use?The two most common credit scores are your FICO® Score and VantageScore®, but there are different versions of credit scores for each model. Put simply, “It’s an iPhone 7 versus an iPhone 9 versus an iPhone 12,” says Ulzheimer. “They’re all iPhones made by the same company, but they’re definitely not the same thing.” The Federal Housing Finance Agency has specific guidelines for what credit scores are used for conventional mortgage loans. So even though there are many newer scoring models (up to FICO® Score 10) these older versions are the mortgage industry standard:
Unless all three of those scores are the same, it’s hard to pinpoint which score your lender will end up using. On top of that, credit scores regularly change, so your score can shift between when you check it and when your lender does. “The only way that you get exactly what the actual mortgage [credit score] is going to be is to have that hard pull done by a lender,” says certified mortgage advisor Kyle Seagraves of homebuyer education site and YouTube channel Win The House You Love. You can check the FICO Scores listed above at myFICO.com, but it’s a paid service (plans begin at $19.95 per month). However, the easily available free credit scores can still provide useful information, even if they aren’t the same scores mortgage lenders use. “Look at the momentum of your credit score, and not necessarily the specific number,” Seagraves says. “Is my score continuing to increase based on the decisions I’m making? Or is it having an opposite effect based on the decisions that I’m making?” How to Improve Your Credit ScoreYour FICO credit scores are broadly based on these five factors:
The nitty gritty of how certain aspects of your credit score are calculated varies depending on the credit scoring model. “You have hundreds of [different credit] scores. There are three credit bureaus, there are multiple generations of scoring software made by different companies,” Ulzheimer says. But you don’t need to fully understand or worry about every single type of credit score to start improving your credit score. “The good news is that every single credit score is all based on the same thing — one of your three credit reports,” Ulzheimer says. Bottom LineThere is no magic formula to instantly improve your credit score overnight. Focus on taking care of the most important things, such as paying your bills on time, paying down debt, and only applying for credit when you need it. Then it won’t matter as much which specific credit score a lender uses, because all of your credit scores will be trending in the right direction. Correction: An earlier version of this story incorrectly stated that your credit utilization ratio accounts for 30% of your FICO Score. Your credit utilization ratio is one of a number of factors that are taken into consideration for the ‘amounts owed’ portion of your FICO Score, which comprises 30% of your credit score. What FICO score do lenders usually use?Lenders most commonly use the FICO® Score to make lending decisions, and in particular, the FICO® Score 8 is the most popular version for general use. If you've taken an interest in the health of your credit and how lenders will view it, checking your FICO® Score 8 is a smart place to start.
Which credit score is most accurate?Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.
Which FICO score is most commonly used?FICO 8 is still the most widely used FICO credit score today. If you apply for a credit card or personal loan, odds are that the lender will check your FICO 8 scores from one or more of the major credit bureaus.
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