First, find out your real score
Before fixing anything, know the number that counts. Free consumer apps typically show VantageScore or FICO Score 8. Mortgage lenders are required to use older FICO models, commonly FICO 2, 4 and 5, one per bureau.
Those models weigh collections and utilisation differently and are less forgiving. A gap of 40 to 60 points between a free app and your mortgage score is completely normal. Plan around the mortgage number, which means having a lender pull it before you start rather than after you have written an offer.
Lenders use the middle of your three scores. If they come back 648, 671 and 702, your qualifying score is 671. With two borrowers, the lower of the two middle scores usually prices the loan.
What actually moves a score, ranked by speed
| Action | How fast | Impact |
|---|---|---|
| Pay revolving balances below 30%, ideally under 10% | One reporting cycle | High — usually the fastest available gain |
| Rapid rescore after paying balances | Days | High — a lender-initiated update rather than waiting a full cycle |
| Correct genuine reporting errors | Weeks | Variable, occasionally large |
| Become an authorised user on a seasoned card | One cycle | Moderate and often overlooked |
| Consistent on-time payments | Months | Moderate but compounding |
| Ageing of negative items | Years | Gradual |
The five things not to do
- Do not close old credit cards. It shortens your credit history and raises your utilisation ratio. Leave them open even if unused.
- Do not open new credit. No car loan, no store card, no financed furniture — not before applying, and not between application and closing.
- Do not pay off old collections without asking first. Paying can reset the date of activity and briefly drop the score, and some programs do not require certain collections to be paid at all.
- Do not dispute items mid-application. Active disputes complicate underwriting. Resolve them before you apply.
- Do not move large sums between accounts unexplained. This is not a score issue, but undocumented deposits will hold up your file at underwriting.
What score you are aiming for
The target depends on the loan you intend to use, and lower than most people assume.
| Score | What opens up |
|---|---|
| 500–579 | FHA possible with 10% down; limited lender appetite |
| 580–619 | FHA with 3.5% down — the most common first-time buyer path |
| 620–679 | Conventional becomes available, though priced up; FHA often still cheaper |
| 680–739 | Solid conventional pricing |
| 740+ | Best available conventional pricing and lowest mortgage insurance |
Note the asymmetry: on a conventional loan, a lower score raises both your interest rate and your private mortgage insurance, because both are priced off credit. On FHA, mortgage insurance costs the same regardless of score. That is precisely why FHA is frequently cheaper below roughly 680, even though conventional sounds more prestigious.
A realistic 90-day plan
- Days 1–7: Have a lender pull your real tri-merge credit. Identify the middle score and the specific items dragging it.
- Days 7–30: Pay revolving balances down. Target under 30% on every card, and under 10% on any card you can clear. Utilisation is calculated per card as well as overall.
- Days 30–45: Dispute genuine errors with documentation. Ask your lender whether a rapid rescore makes sense once balances report.
- Days 45–75: Hold steady. No new accounts, no closures, every payment on time. Gather your income and asset documents in the meantime.
- Days 75–90: Re-pull credit and re-price the loan. Many borrowers find the improvement changes both their approval and their monthly payment.
When waiting is the wrong answer
Credit repair is worth doing, but not indefinitely. If you are already approvable on FHA today, waiting three years for a perfect conventional score while home prices and rents move is frequently the more expensive choice.
There is a middle path most buyers are never told about: buy now with the program that fits your credit, then refinance later once your score and equity have improved. Refinancing from FHA into conventional removes the FHA mortgage insurance permanently. That sequencing gets people into homes years earlier than waiting does.
Special situations
No credit score at all. This is not a dead end. FHA permits non-traditional credit, using twelve months of on-time rent, utility, insurance or phone payments under manual underwriting. It requires organised documentation, but people buy homes this way regularly.
After bankruptcy or foreclosure. FHA waiting periods are shorter than conventional — generally two years from a Chapter 7 discharge and three years from a foreclosure, against four and seven for conventional. Documented extenuating circumstances can shorten them further, and Chapter 13 filers may qualify during the plan with twelve months of on-time payments and trustee approval.
Frequently asked questions
Q: How fast can I raise my credit score for a mortgage?
A: Utilisation is the fastest lever. Paying revolving balances below 30%, ideally under 10%, can move a score within a single reporting cycle. A lender-initiated rapid rescore can update your file in days rather than waiting a full month. Most borrowers who need work need 60 to 90 days, not years.
Q: Why is my mortgage credit score lower than the app on my phone?
A: Because they are different scoring models. Consumer apps usually show VantageScore or FICO 8, while mortgage lenders must use older FICO versions — typically FICO 2, 4 and 5. Those are less forgiving on collections and utilisation. A 40 to 60 point gap is normal, not an error.
Q: Should I pay off my collections before applying?
A: Ask a lender first. Paying an old collection can reset its date of activity and temporarily lower your score at exactly the wrong moment, and some programs do not require medical collections or small balances to be paid at all. The sequence matters more than the amount.
Q: Does closing a credit card help my score?
A: No, it usually hurts. Closing a card shortens your average account age and reduces your total available credit, which raises your utilisation ratio. Leave old cards open even if you never use them, at least until after closing.
Q: What is a rapid rescore?
A: A lender-initiated process that updates your credit file with new information — usually paid-down balances — in days rather than waiting for the normal reporting cycle. It cannot remove accurate negative information; it simply speeds up the reporting of changes you have already made.
Q: Can I buy a house with no credit score?
A: Often yes, through FHA non-traditional credit. Twelve months of on-time rent, utilities, insurance or phone payments can establish a payment history under manual underwriting. It takes more documentation but it is a well-established path.
Q: How long after bankruptcy can I buy a home?
A: FHA generally requires two years from a Chapter 7 discharge and three years from a foreclosure, versus four and seven years for conventional. Documented extenuating circumstances can shorten these, and Chapter 13 filers may qualify while still in the plan with trustee approval.
Q: Do both spouses need good credit?
A: If both are on the loan, the lower of the two middle scores normally sets the pricing. Sometimes the right move is for only the stronger-credit spouse to apply, but then only that person’s income counts toward qualifying. It is a genuine trade-off worth modelling both ways.
Q: Will a credit repair company help?
A: Sometimes, but be cautious. Anything a paid company can legitimately do, you can do yourself — disputing genuine errors and paying down balances. No company can lawfully remove accurate negative information, and any that promises to is worth walking away from.
Q: Is it better to wait until my score is perfect?
A: Rarely. If you are approvable today, waiting years for an ideal score while prices and rents move usually costs more than the rate difference saves. Buying with the program that fits your credit now and refinancing later is frequently the stronger financial move.