How Your Credit Score Affects Your Mortgage Rate
By Colson · Reviewed by Abodemic Editorial Standards · Updated June 1, 2026
Your credit score is one of the biggest levers on your mortgage rate. Moving from fair to excellent credit can lower your rate by a full percentage point or more — worth tens of thousands over a 30-year loan. Most conventional loans want 620+, with the best rates above 740.
How much does credit score affect your mortgage rate?
A lot. Lenders price mortgages in credit tiers, and moving from a fair score (around 620) to excellent (740+) can lower your rate by a full percentage point or more. On a $400,000 loan, that's hundreds of dollars a month and tens of thousands over 30 years — quantify it in the mortgage calculator.
What credit score do you need for a mortgage?
Conventional loans typically require 620+, FHA allows 580 (or 500 with 10% down), and VA/USDA lenders often look for 620+. But the minimum to qualify and the score for the best rate are different — the lowest rates generally go to scores above 740.
How to improve your score before applying
- Pay down credit-card balances to under 30% (ideally 10%) of your limits.
- Don't open or close accounts in the months before applying.
- Dispute errors on your credit reports — they're more common than you'd expect.
- Make every payment on time; payment history is the biggest factor.
Already have a mortgage at a high rate?
If your score has improved since you bought, you may qualify for a lower rate now. Check the refinance calculator to see if refinancing pays off.