What Does Your Credit Score Tell Lenders About You?

What Does Your Credit Score Tell Lenders About You?

Your credit score is a three-digit snapshot of how you've managed borrowed money. When you apply for a mortgage, auto loan, or credit card, lenders check this number—ranging from 300 to 850—to predict whether you'll repay on time.

Here's what they're looking at: your payment habits over the years, how much debt you're currently carrying, and how long you've been building credit. FICO (Fair Isaac Corporation) created the most widely used scoring model, which is why you'll often hear "FICO score" and "credit score" used interchangeably.

A higher score signals lower risk. That translates to better loan terms and lower monthly payments.

What Are the 5 Factors That Affect Your Credit Score?

Credit scoring models weigh five main inputs when calculating your number:

1. Payment history (35%): Do you pay on time? This is the biggest factor. A single late payment can stay on your report for seven years.

2. Credit use (30%): How much of your available revolving credit are you using? Keeping balances below 30% of your limit often helps your score.

3. Length of credit history (15%): Older accounts show stability. That's why closing a long-held card may actually hurt your score.

4. New credit (10%): Opening several accounts in a short period may signal risk to lenders.

5. Credit mix (10%): A blend of credit types—like a car loan, mortgage, and credit card—can strengthen your profile.

What is a good credit score for my age? Scores tend to climb as you build history. Many people in their 20s hover near the mid-600s, while borrowers in their 30s and 40s often move into the high-600s to 700+ range. It's less about hitting a number by a certain age and more about consistent habits over time.

Credit Score Benchmarks for Loans and Home Buying

What Is a Good Credit Score to Buy a House?

Most mortgage lenders want to see at least a 620 for conventional loans. Scores of 670 or higher usually unlock better pricing. If you're at 740 or above? That's where you'll find your best rates.

FHA loans are more flexible. They may accept scores as low as 580 with 3.5% down, or 500 with 10% down, though lender requirements vary. If buying a home is on your radar, we can walk you through all the mortgage options with our purchase your home lending solutions.

Is a 900 Credit Score Possible?

Nope. The standard FICO scale caps at 850. Anything above 800 typically qualifies for top-tier pricing, so the gap between an 820 and an 850 is pretty small in practical terms.

What Is a Loan?

A loan is money you borrow and repay over time, usually with interest. Lenders check your credit score along with your income and existing debts to decide whether to approve you and what terms to offer. At Broadview, we've designed several personal lending options, including our Fresh Start Loan for members working to rebuild credit.

Steps to Show Lenders Your Best Financial Side

The good news? You've got control here.

• Pay bills on time. Set up automatic payments or calendar reminders. Missing due dates hurts more than almost anything else.

• Keep revolving balances low. Aim to stay under 30% use. If you've got a $10,000 credit limit, try not to carry more than $3,000 across all cards.

• Request a credit limit increase. If you're approved and your spending stays steady, your use drops instantly.

• Protect your checking account. Overdrafts don't directly affect credit scores, but they can lead to missed payments if left unchecked. Consider activating Overdraft Protection as a safety net.

• Keep older accounts open when possible. Even if you're not using a card actively, keeping it open may help your average account age.

• Limit new credit applications. Each hard inquiry can shave a few points off your score temporarily. Shop for rates within a focused window (usually 14-45 days) to minimize impact.

• Review your credit reports annually. Grab your free reports in the Broadview app and dispute errors with the bureau that's reporting them. Small mistakes can drag down your score for no good reason.

Quick Win: If you're carrying balances on multiple cards, paying down the one with the highest percentage used often gives you the fastest score boost.

At Broadview, we help members understand how lenders read credit signals and what you can do to strengthen your file. Visit a branch or give us a call to discuss your goals and next steps. We're here to walk with you.

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Frequently Asked Questions

What does your credit score tell lenders about you?

A credit score provides lenders with a quick view of how reliably you have managed borrowed money. It helps them predict if you will repay a loan on time. This three-digit number, ranging from 300 to 850, reflects your payment habits, current debt, and credit history length.

What credit score is generally needed for a mortgage?

For conventional mortgages, lenders often look for a minimum credit score of 620. Scores of 670 or higher typically receive better pricing. FHA loans may accept lower scores, sometimes as low as 580 with a 3.5% down payment.

Can a 700 credit score help me get a loan?

Yes, a 700 credit score generally indicates a reliable payment history to lenders. This often leads to good approval odds and fair interest rates for various loans. Lenders also consider your income and debt details when making approval decisions.

What information do lenders see on my credit report?

Lenders see details about your payment history, how much of your available credit you are using, and the length of your credit history. They also review information on new credit applications and the mix of credit you manage. This data helps them assess your financial management.

What are the main factors that affect my credit score?

Your credit score is primarily influenced by five factors. Payment history, showing that you've paid on time, is the most significant. Credit use, or how much of your available credit you use, is also a major component. The length of your credit history, new credit applications, and your credit mix also play a role.

How can I work to improve my credit score?

To improve your credit score, focus on paying all bills on time and keeping your revolving credit balances low, ideally below 30% of your limit. It is also helpful to keep older accounts open when possible and limit new credit applications. Regularly review your credit reports for accuracy and dispute any errors.

^{Last reviewed: February 25, 2026 by the Broadview Team}