Is 712 a Good Credit Score for a Mortgage?
A credit score of 712 is considered to be in the “Good” range, according to Experian [2]. This means that you are viewed as an “acceptable” borrower by lenders [4]. With a credit score of 712, you should qualify for mortgage rates on-par with national averages [1]. However, it is important to note that lenders typically reserve their best rates for borrowers with very good or exceptional credit scores [1].
Key Facts
- A credit score of 712 is considered to be in the “Good” range.
- With a credit score of 712, you should qualify for mortgage rates on-par with national averages.
- Lenders typically reserve their best rates for borrowers with very good or exceptional credit scores.
- Consumers with scores in the good range are viewed as “acceptable” borrowers by lenders.
- Having a credit score in the good range provides access to a broad array of loans and credit card products.
- It is important to manage your credit score carefully to prevent dropping into the more restrictive Fair credit score range (580 to 669).
Having a credit score in the good range provides access to a broad array of loans and credit card products [4]. However, it is important to manage your credit score carefully to prevent dropping into the more restrictive Fair credit score range (580 to 669) [4].
How to Improve Your Credit Score
If you want to improve your credit score, there are a few things you can do:
- Keep your credit utilization low. The average consumer with a FICO Score of 795 or higher uses just 7% of their available credit [1].
- Only apply for new credit if you really need it. Hard credit inquiries from within the past 12 months can adversely affect your score, and recently opened accounts can also hurt [1].
- Let your credit age. The average consumer with a FICO Score above 795 has an average account age of about 12 years [1].
- Keep paying your bills on time. Payment history is admittedly a no-brainer but is worth mentioning. It’s not uncommon for someone with your score to have a late payment or two, but 96% of consumers with FICO scores above 795 have never been delinquent on a credit account [1].
Conclusion
A credit score of 712 is considered to be in the “Good” range, and it should qualify you for mortgage rates on-par with national averages. However, it is important to note that lenders typically reserve their best rates for borrowers with very good or exceptional credit scores. If you want to improve your credit score, there are a few things you can do, such as keeping your credit utilization low, only applying for new credit if you really need it, letting your credit age, and keeping paying your bills on time.
Sources
- Upstart: 712 Credit Score: What You Need to Know
- Experian: 712 Credit Score: Is it Good or Bad?
- Credit Karma: What’s a Good Credit Score?
FAQs
What is considered a good credit score for a mortgage?
A credit score of 712 is considered to be in the “Good” range, and it should qualify you for mortgage rates on-par with national averages.
What are the benefits of having a good credit score when applying for a mortgage?
Having a good credit score can help you qualify for a lower interest rate on your mortgage, which can save you money over the life of the loan. It can also help you qualify for a larger loan amount.
What are some things I can do to improve my credit score?
There are a few things you can do to improve your credit score, such as keeping your credit utilization low, only applying for new credit if you really need it, letting your credit age, and keeping paying your bills on time.
What if I have a credit score that is lower than 712?
If you have a credit score that is lower than 712, you may still be able to qualify for a mortgage, but you may have to pay a higher interest rate. You can also take steps to improve your credit score over time.
What are some tips for getting a good mortgage rate?
In addition to having a good credit score, there are a few other things you can do to get a good mortgage rate, such as shopping around for the best interest rate, getting pre-approved for a loan, and making a larger down payment.
What are some common mistakes to avoid when applying for a mortgage?
Some common mistakes to avoid when applying for a mortgage include not checking your credit score before applying, not shopping around for the best interest rate, and not getting pre-approved for a loan.
What are some resources that can help me learn more about mortgages?
There are a number of resources that can help you learn more about mortgages, such as the Consumer Financial Protection Bureau (CFPB) website, the Federal Housing Administration (FHA) website, and the Department of Housing and Urban Development (HUD) website.