Credit Score Basics
Your credit score is one of the biggest levers in your mortgage application. It affects whether you qualify, what rate you get, and how much mortgage insurance costs.
What goes into a FICO score
Payment history (35%) — on-time payments are the single biggest factor.
Credit utilization (30%) — how much of your available credit you're using.
Length of credit history (15%) — older accounts help.
Credit mix (10%) — a healthy mix of revolving and installment credit.
New credit (10%) — too many recent inquiries can hurt.
Score requirements by loan type
Conventional: 620 minimum, 740+ for the best rates.
FHA: 580 with 3.5% down, 500–579 with 10% down.
VA: no official minimum, but most lenders want 580–620+.
Jumbo: typically 700+, often 740+.
Quick wins to boost your score
Pay down revolving balances to under 30% of the limit (under 10% is even better).
Don't close old credit cards — keeping them open helps utilization and history length.
Set up autopay for at least the minimum on every account.
Dispute errors on your credit reports — they're more common than you'd think.
Key takeaways
- On-time payments and low utilization are the two biggest drivers.
- A 20-point bump can save thousands over the life of your loan.
- Check your reports before applying — fix errors first.
Have questions about your situation?
Ark Beacon can answer questions and match you with a vetted lender in about 60 seconds.
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