What Is a Good Credit Score? Here’s the Complete Breakdown

Most conventional mortgage lenders require a minimum FICO score of 620. However, to qualify for the best mortgage rates, you typically need 740 or above. FHA loans (backed by the Federal Housing Administration) allow scores as low as 500 with a 10% down payment, or 580 with a 3.5% down payment. VA loans and USDA loans have no official minimum but most lenders set their own floor around 620. Keep in mind that your credit score affects not just approval but the interest rate — a difference of 100 points can mean paying $200–$400 more per month on a typical mortgage.

Your credit score updates whenever your credit report changes — typically once per month when creditors report your account status. Most major credit card issuers report to all three bureaus (Equifax, Experian, TransUnion) monthly, around your statement closing date. This means paying down a balance before your statement closes can reflect in your score within 30 days. Free credit monitoring services like Credit Karma and Experian show you score updates weekly, while your actual lender-pulled FICO scores update monthly.

No — checking your own credit score is a “soft inquiry” and has zero impact on your FICO score. You can check your score as often as you like through free services like Credit Karma, Experian, or your bank’s credit score dashboard without any penalty. Only “hard inquiries” — when a lender pulls your credit for a loan or credit card application — can temporarily affect your score. You are also entitled to one free credit report from each bureau annually at AnnualCreditReport.com, the only federally authorized site for free reports.

FICO Score 8 is the most widely used version by lenders today. FICO Score 9 is a newer version that treats medical debt differently — ignoring paid medical collections entirely and giving less weight to unpaid medical debt. FICO Score 9 also ignores collection accounts with zero balances. If you have medical debt on your report, you may have a higher FICO 9 score than FICO 8. Mortgage lenders still predominantly use older FICO versions (FICO 2, 4, and 5 depending on the bureau). Auto lenders often use industry-specific FICO Auto Scores, which weight auto loan history more heavily.