In this era of COVID, your credit score could be the difference between buying and not buying a home.

In this era of COVID-19, buying a home has become more difficult. Lenders and banks alike have altered their requirements in an effort to protect themselves. With so many people either furloughed or unemployed, it makes sense from their standpoint.

Whether you are buying your first house or your next house, your credit score could be the difference between buying and not buying a home right now.

Buyers are focused on historically low interest rates right now and they should be. However balancing finances should also be a priority. If buyers can do that, they can improve their credit score and thus improve their chances of getting a conventional loan.

These are the factors to consider when building up your credit score:

• Do you make payments on time?

• How do you use your credit?

• The length of your credit history.

• Any new credit accounts.

• The types of credit you use.

According to, this is a breakdown of credit scores and the different ranges.

  • Excellent: 750 – 850
  • Good: 700 – 749
  • Fair: 650 – 699
  • Poor: 550 – 649
  • Bad: 350 – 549

VantageScore and FICO are the two most well known models to calculate your credit score.

Most lenders look at your FICO Score which is complied by the Fair Isaac Corporation.

VantageScore 3.0 uses a scoring range that matches the FICO scoring model.

Prior to COVID-19, you needed a credit score of 620 and up to qualify for a conventional loan and no less than a 580 to qualify for an FHA loan.

Due to COVID-19 these requirements have since changed. Lenders have increased the minimum credit scores required.

Bottom line, it is simple to improve your credit score.

1. Pay off outstanding debt.

2. Pay your bills on time.

3. Don’t apply for more credit.

It is a challenging buyers market between COVID-19 and low inventory. If you are ready and willing to buy, you can position yourself to compete for the home you want.

A good credit score gets into a conventional program where you can dictate how much you put down and how much you are willing to spend when competing for a property.

If you want to be able to buy that “dream” home right now, you need to have good credit. It is that simple.