Credit Score

Your credit score is one of the most important considerations when you are looking to finance a home or rent an apartment. It shows the history of how you have managed debt. Most banks will use your credit score to determine your loan and interest rate qualifications. I highly recommend doing your research and seeking assistance from a credit professional. You may visit the Consumer Financial Protection Bureau website for more information about credit scores.

Here are a few tips to improve your credit score:

Payoff any outstanding debt (start with high-interest debt).

Pay your bills on time (autopay is highly recommended).

Do not apply for too much credit.

Keep your credit utilization rate/ratio below 30% (even lower is better for your score!). Your credit utilization is the amount of revolving credit you are currently using divided by the total amount of revolving credit you have available.

 Make sure you do not have any collections reports.

According to, Collections on Your Credit Report is “When an account becomes seriously past due, the creditor may decide to turn the account over to an internal collection department or to sell the debt to a collection agency. Once an account is sold to a collection agency, the collection account can then be reported as a separate account on your credit report. Collection accounts have a significant negative impact on your credit scores.”

Please visit to get your free annual credit report from each of the three credit reporting agencies (Equifax, Experian, and TransUnion).

Mortgage Loan Credit Score Requirement:

  • 620 Conventional Loan
  • 580 Federal Housing Administration (FHA) Loan
  • 580 Veterans Affairs (VA) Loan
  • 640 United States Department of Agriculture (USDA) Loan

*Considering everyone’s financial situations are different, I recommend consulting with a mortgage professional. These are standard credit score requirements and are subject to change.