Which FICO® Score do mortgage lenders use?

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    Jordan Moore
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    Jordan Moore
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    Your credit score is one of the most important factors that lenders look at to decide whether your mortgage (or any other loan) can be approved.

    While FICO® scores are widely used, specific versions vary depending on your loan type. Most lenders rely on FICO Scores 2, 4, and 5 to assess your borrowing potential. All three major credit bureaus — Experian®, Equifax®, and TransUnion® — utilize FICO Scores.

    What makes up your score?

    • Payment History (35%): The cornerstone of your creditworthiness, consistent on-time payments significantly impact your score.
    • Credit Utilization Ratio (30%): This measures your debt-to-credit ratio, where lower utilization indicates responsible borrowing.
    • Length of Credit History (15%): A longer credit history, especially with older accounts, adds stability to your score.
    • Credit Mix (10%): Having a diverse mix of credit accounts, like mortgages and credit cards, demonstrates responsible credit management.
    • New Credit (10%): Applying for new credit too frequently can raise red flags for lenders, so moderation is key.

    A note on score variations: Your credit score might differ depending on which credit bureaus your lender(s) report to and which files they pull. If they access all three bureaus, they often use the median score from those reports. This “tri-merge” credit report provides a comprehensive picture of your credit history, contributing to their decision.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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