Mortgage pricing is heavily tiered by credit score. These tactics help you cross key score thresholds, manage tradelines wisely, and communicate with underwriters so you secure the best available interest rate.

Key takeaways

• Target a middle FICO of 740+ for top conventional pricing and 680+ for jumbo programs.
• Rapid rescoring can refresh bureau data quickly when you pay down revolving balances or correct errors.
• Adding a small-dollar secured card can round out thin credit files before you apply.

Attack revolving utilization

Pay credit cards down 15 days before the statement closes so it reports a lower balance to the bureaus.

Consider redistributing balances to keep each card below 30% utilization while maintaining overall usage under 10%.

• Ask issuers for credit line increases to lower utilization instantly.
• Avoid closing old accounts; age of credit history makes up 15% of your score.

Clean up reports and disputes

Dispute inaccurate late payments or collections in writing. Provide supporting documents such as payment confirmations or settlement letters.

Work with your lender on a credit supplement or rapid rescore if you correct information during underwriting.

• Keep documentation organized in a shared drive so you can upload quickly to the lender portal.
• Pause new disputes 30 days before application; open disputes can trigger underwriting conditions.

Build a resilient tradeline mix

If your credit history is thin, add a small installment loan or secured card six months before applying.

Become an authorized user on a well-managed account to gain positive history, but confirm the issuer reports to all bureaus.

• Keep at least three open tradelines active to satisfy automated underwriting preferences.
• Monitor FICO updates monthly and screenshot milestone improvements for your loan officer.

Action steps to take next

1. Schedule a credit review 90 days before you expect to apply for a mortgage.
2. Calculate projected scores using credit monitoring tools once balances post.
3. Ask lenders which FICO model they use so you can tailor your optimization strategy.

Mortgage questions answered

Do mortgage lenders use VantageScore?

Most use FICO Score 2, 4, or 5 depending on the bureau. Confirm the exact model with your loan officer.

Will paying off a collection boost my score?

It can, but impact varies. Paid collections are often viewed more favorably during underwriting even if the score bump is modest.