Mortgage Glossary
Credit Score
A number (usually 300–850) that measures how reliably you've repaid past debts. Higher scores unlock better mortgage rates and more loan options.
What It Means
Your credit score is a three-digit number calculated from your credit history. Lenders use it to gauge how likely you are to repay a loan.
The most common scoring model is FICO, ranging from 300 to 850:
- 760+ — Excellent (best rates)
- 700–759 — Good
- 640–699 — Fair
- 580–639 — Poor (limited options)
- Below 580 — Very difficult to qualify
Your score is influenced by: payment history, amounts owed, length of credit history, new credit, and credit mix. Even if your score isn't perfect today, there are real steps you can take to improve it before applying.
Real-World Example
"A borrower with a 760 credit score on a $300,000 mortgage might get a 6.5% rate, while someone with a 640 might see 7.5% or higher — costing thousands more per year."
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Definitions are for educational purposes only and do not constitute financial or legal advice.