Credit: Your Track Record with Debt
Your credit shows us how you handle money. A great credit profile can help you qualify for lower interest rates and more flexible loan options. If you have debt, that’s okay—you can still apply for a loan, especially if you make consistent and on-time payments toward what you owe.
What we look at (and why)
Your credit score
- Why it matters: It’s your financial report card, so it gives us an overview of how you spend money and handle debt. Scores range from 300 to 850. A higher score can pay off through lower interest rates and better loan terms, but if you have a lower score or are still building your credit history, there are great loan programs still available to you.
Payment history
- Why it matters: Paying your bills on time shows us that you know how to handle your money. Late payments, especially a pattern of them, can really affect your loan application.
Your total debt and credit usage
- Why it matters: Debt doesn’t disqualify you from buying a home. Using a credit card doesn’t either! Controlling your debt and credit through making payments and spending within reason are great ways to show us that you’re responsible.
Bankruptcies or accounts in collections
- Why it matters: They make the loan process a little tricky, but it’s still possible to qualify for a loan with either.
