Credit Scores and Mortgages
How credit scores actually affect your mortgage — and what to do before applying.
How lenders read your credit
Lenders pull either Equifax, TransUnion, or both. They look at the beacon score, depth of credit history, recent inquiries, derogatory items, and credit utilization. Two scores are typical (one from each bureau); the lender often uses the lower of the two.
Score ranges and approval impact
750+: Best rates, all lenders open. 680–750: Strong, standard A-lender pricing. 620–680: Most A-lenders still open, some pricing pressure. 550–620: B-lender territory. Under 550: Private lender territory.
Quick wins to boost your score 30–60 days before applying
Pay down revolving credit to under 30% of limits, dispute any errors on your bureau report, don't open new accounts, don't close old accounts (length of history matters), and make sure every payment is on time for 90 days before application.
What hurts your score most
Missed payments (especially 60+ days late), high credit utilization, collections, judgements, and recent bankruptcy or consumer proposal. Each of these has a different impact and recovery curve.
How long damage lasts
Late payments: 6 years from the original delinquency date. Collections: 6 years. Bankruptcy: 6 years for first bankruptcy, 14 for second. Consumer proposal: 3 years after completion. None of these instantly disqualify you — they just shift which lender tier is available.
Have questions about your situation?
Every mortgage file has its own story. A 15-minute call with Jay is enough to know your real options.