Why lenders (and others) look at your credit score

Most people know your credit is checked when applying for a loan or credit card. But did you know your credit score might also be reviewed when you:

• Rent an apartment

• Apply for certain jobs

• Qualify for lower insurance rates

And when it comes to buying a home in Arizona, California, Florida, or Texas — the states I serve — your credit score directly impacts your interest rate, monthly payment, and how much home you can afford.

What counts toward your FICO® score

Most lenders use your FICO® score, which comes from three credit bureaus: Experian, TransUnion, and Equifax. Here’s the breakdown of how it’s calculated:

• 35% Payment history – Paying on time matters most

• 30% Amounts owed – Also called “credit utilization”

• 15% Length of credit history – Older accounts help your score

• 10% Types of credit – A healthy mix of credit cards, loans, etc.

• 10% New credit – Each new inquiry can lower your score a bit

Two key ways to boost your score:

1. Keep your accounts active and current – Use your credit responsibly and pay on time.

2. Watch your credit utilization – Try to keep balances under 30% of your available credit.

For example, if you have $10,000 of available credit, keep balances at $3,000 or less. This shows lenders you can manage credit wisely.

Why it pays to check all three reports

Errors happen. One bureau may show an issue that doesn’t exist on the others. You can check your reports for free each year at annualcreditreport.com. If you want to see your actual FICO scores, sites like myfico.com are a good place to start.

The bottom line

Whether you’re buying your first home in Scottsdale, upgrading in Phoenix, or relocating anywhere in Arizona, California, Florida, or Texas — your credit score plays a big role in shaping your options. A score of 720+ is considered “good”, but you don’t need perfect credit to buy. You just need a plan.

That’s where I come in. At No Hassle Home Loans, I’ll help you understand your credit, map out your loan options, and guide you step-by-step so you can move confidently toward homeownership.

FAQs About Credit Scores and Home Loans

1. What credit score do I really need to buy a house in Phoenix, Scottsdale, or anywhere in Arizona?
Most loan programs start around 500–620, depending on the type (FHA, VA, Conventional). But higher scores (usually 720+) unlock lower rates, smaller payments, and better approval odds.

2. Can I get approved for a home loan in Arizona even if my credit score isn’t great?
Yes. Many Arizona buyers qualify with less-than-perfect credit every year. The key is choosing the right loan program and working with a mortgage strategy that fits your situation.

3. Does checking my own credit score hurt me when I’m preparing to buy a home?
No — pulling your own report is a “soft inquiry” and doesn’t lower your score. Only “hard pulls” from lenders impact your score slightly, and even then, it’s usually temporary. If you'd like to use my free tool to pull your own free credit report message me, I got you!

✨ Ready to start your homeownership journey in Scottsdale, Phoenix, or anywhere in Arizona?
👉 Download my Free Homebuyer Guide
👉 Or book a no-pressure call with me here: Schedule a Call

At No Hassle Home Loans, my goal is simple: make the process clear, stress-free, and strategic—so you can focus on the joy of getting keys to your new home.