Financial
Credit Score
A three-digit number, typically between 300 and 850, that represents your creditworthiness based on your borrowing history. Mortgage lenders use your credit score to determine whether to approve your loan and what interest rate to offer. A score above 740 usually qualifies you for the best rates, while scores below 620 limit your options. Paying bills on time, keeping credit card balances low, and avoiding new credit inquiries before applying will help your score.
Why It Matters
Credit Score directly affects how much you pay for your home and how you build wealth through homeownership. Understanding the financial mechanics of your mortgage helps you make choices that save money over the long term.
Use mortgage calculators to see how credit score impacts your specific numbers. Even small differences in financial terms can add up to tens of thousands of dollars over the life of a 30-year mortgage.