The credit score playbook

Which credit score lenders actually use

Mortgage lenders pull a tri-merge from Experian, Equifax, and TransUnion - and use your middle score. Two borrowers? They use the lower of the two middle scores. The FICO models used (FICO 2, 4, and 5) are older and harsher than the FICO 8 you see on Credit Karma or your card app - expect your mortgage score to be 10-40 points lower than your consumer-facing score.

The 80/20 of mortgage credit scoring

• Payment history (35%) - even one 30-day late inside 24 months can cost 60-100 points.
• Credit utilization (30%) - the lever you control fastest. Target under 10% on each card by statement-cut date.
• Length of history (15%) - never close your oldest card.
• Credit mix (10%) - a healthy mix of revolving + installment helps.
• New credit (10%) - every inquiry costs 2-5 points temporarily.

Moves in priority order

Today: pay every card down to under 10% utilization

This is the fastest, biggest lever. Scores update when the card’s statement cuts - usually 21-30 days. If your card statements cut on the 5th, paying on the 4th is what registers.

• Per-card matters, not just total. One card at 89% drags your score even if your aggregate is 22%.
• Don’t close cards. Closing a card with available credit raises your utilization on the remaining cards.
• AZEO trick: All cards at $0 statement balance except one reporting 1-8%. Optimal for FICO mortgage models.

Within 30 days: dispute incorrect items

Roughly 1 in 5 credit reports has a material error. Pull your full report free at annualcreditreport.com (the only federally authorized source). Hunt for:

• Late payments you actually paid on time
• Collections past the 7-year wall
• Accounts that aren’t yours (identity issues)
• Wrong balances or credit limits (a missing limit makes utilization look 100%)
• Duplicate collections from a single original debt sold between agencies

Dispute directly with the bureau (online is fine) and with the data furnisher (the original creditor). The bureau has 30 days to investigate. Most disputes resolve in 7-14 days.

Within 60 days: rapid rescore through your lender

Once you’re mortgage-shopping, your loan officer can order a rapid rescore - a 3-7 business day re-pull after you pay down balances or fix an error. Costs $30-150 per tradeline; the lender pays (and cannot pass cost to you). Worth it if a 20-point bump moves you into a better tier.

Within 90 days: add positive history

• Become an authorized user on a family member’s card with long history and low utilization. Their account’s history grafts onto your report.
• Experian Boost / UltraFICO - adds utility, phone, and streaming payments. Only impacts Experian-based scores; mortgage lenders use all three, so it’s small.
• Secured card if you have thin credit. Discover It Secured or Capital One Platinum Secured. Six months of perfect history builds a real tradeline.

What NOT to do while mortgage-shopping

• Don’t open new credit. Every inquiry can drop you 2-5 points. New tradelines drop your average account age.
• Don’t close old cards. Even if you don’t use them - the available credit anchors your utilization.
• Don’t make large undocumented deposits. Underwriters will source every deposit over ~50% of monthly income.
• Don’t pay off old collections without strategy. Paying revives a dormant account and resets the 7-year clock on some scoring models. Negotiate a pay-for-delete in writing first.
• Don’t change jobs unless it’s same field, same or higher pay, with a signed offer.

The Texas-specific note: medical collections

As of 2023, medical collections under $500 are no longer reported. Larger paid medical collections are also off your report. If a Texas hospital sold an old bill to a collector - and they re-report it - dispute immediately with documentation.

Minimum scores by loan program

Educational only. Always work with a licensed loan officer for a tri-merge pull and specific guidance.