Your credit score moves your mortgage rate more than almost any other factor — sometimes by more than 1.5 percentage points between a 740 borrower and a 660 borrower. Three months of intentional credit work before applying can pay for itself many times over in interest savings.
The Score Tiers Lenders Use
| FICO Score | Rate Tier | Typical Spread vs Best Rate |
|---|---|---|
| 760+ | Best | 0.00% |
| 740–759 | Very Good | +0.10% – 0.15% |
| 720–739 | Good | +0.25% – 0.40% |
| 700–719 | Fair | +0.50% – 0.75% |
| 680–699 | Mediocre | +0.75% – 1.00% |
| 660–679 | Borderline | +1.00% – 1.50% |
| Below 660 | High-Risk | +1.50% – 3.00% (or denied) |
Quick Wins (60–90 Day Timeline)
- Pay down credit card balances to under 10% utilization — fastest score lever.
- Dispute any errors on your reports at annualcreditreport.com.
- Become an authorized user on a family member's old, well-paid card.
- Pay every bill on time — even by one day late drops your score.
- Don't close old credit accounts (length of history matters).
What NOT to Do in the 90 Days Before
Don't open new credit, don't apply for an auto loan, don't close existing cards, don't consolidate debt, and don't let any balance go to collections. Each can drop your score 30–80 points right when you need it most.
Where to Pull Your Reports for Free
AnnualCreditReport.com is the official, free, no-credit-card-required source for all three bureau reports. You can pull each one once per week. The free score on most banking apps is a "VantageScore," which lenders don't use — get your actual FICO through myFICO.com or Discover's free Credit Scorecard.
A 90-day credit work plan is one of the highest-ROI activities before any major purchase. Pull your reports today, fix any errors, pay down revolving balances, and resist the urge to open anything new.
