Buying a house
What Credit Score Do You Need to Buy a House (and How Credit Card Debt Affects It)
The minimum gets you approved. A higher score saves you money. Credit card debt affects both.
Quick answer: 620 for a conventional loan, 580 for FHA, and no official floor for VA. But the minimum only gets you approved. It does not get you a good rate.
On a $350,000 loan, the rate gap between a 620 score and a 760 score can cost about $374 a month. Same house, same loan, $134,000 more over 30 years. Here is the full picture, and the specific way credit card debt drags on it.
Minimums by loan type
| Loan type | Minimum score |
|---|---|
| Conventional | 620 |
| FHA (3.5% down) | 580 |
| VA | None official |
| USDA | None official |
| Jumbo | 700+ |
Two caveats: individual lenders can set higher floors than the program allows, and these are minimums to qualify, not to get a good deal. Which brings us to the part most articles skip.
Why the minimum is a trap
Mortgage rates are priced in score tiers. Here is what the same $350,000, 30-year loan looks like across tiers at illustrative 2026 rates:
| Score | Rate | Payment |
|---|---|---|
| 760+ | 6.25% | $2,155 |
| 700 to 759 | 6.47% | $2,205 |
| 680 to 699 | 6.65% | $2,247 |
| 660 to 679 | 6.86% | $2,296 |
| 640 to 659 | 7.29% | $2,397 |
| 620 to 639 | 7.84% | $2,529 |
The bottom tier pays $374 more every month than the top tier for the identical house. Moving up even one or two tiers before you apply is worth real money, and for most buyers the fastest lever for that move is sitting in their wallet.
How card debt hits you twice
Hit 1: your credit score
High card balances mean high utilization, which can drop your score 50 to 100 points. That is often two or three rate tiers.
Hit 2: your debt-to-income ratio
Lenders count your card minimums against your income. Those minimums can shrink how much house you qualify for by tens of thousands.
The good news: paying the cards down fixes both at once, and one of them recovers fast.
How fast your score recovers
Utilization has no memory. The bureaus do not care that you carried 70% utilization for three years; they score the balances being reported right now. Pay the cards down and your score reflects it within a reporting cycle or two, typically 30 to 60 days.
That makes card paydown the single fastest score lever available before a mortgage application. Payment history takes years to build and late payments take years to fade, but utilization moves in weeks. The full mechanics are in will paying off credit card debt raise my credit score.
Your 6-month prep plan
1.Months 6 to 5: pull your reports
Get all three bureau reports free at annualcreditreport.com. Dispute errors now; fixes take 30 to 60 days and you want them done before any lender looks.
2.Months 5 to 3: attack the cards
Send every spare dollar at your card balances, highest utilization percentage first. Target under 30% on every card, under 10% if you can get there.
3.Month 3: stop all new credit
No new cards, no financing a couch, no car loan. Hard inquiries and new accounts both ding your score right when it matters most.
4.Months 2 to 1: hold steady
Keep balances low through at least two statement cycles so the good numbers get reported. Pay everything on time. Boring is the strategy.
5.Month 0: get preapproved
Shop 2 or 3 lenders inside a 14-day window; the bureaus count those pulls as one inquiry. Compare the rate you are offered against the tier table above.
Run your own numbers
See how fast your card balances can be gone before you apply. Enter your real balance, APR, and monthly payment:
Credit Card Payoff Calculator
Enter your balance, APR, and monthly payment to see your payoff date and total interest. Results update instantly.
Enter your balance, APR, and a monthly payment to see your payoff timeline, debt-free date, and total interest.
Have more than one card? See the smartest payoff order across all of them.
See My Personalized Debt-Free Date →Then check the other number lenders care about with the debt-to-income ratio calculator.
Related reading
Get mortgage ready
Debt Driver builds a payoff plan around your real balances and your homebuying timeline, so your score and DTI are ready when the lender pulls them. Setup takes about 2 minutes.
Get My Personalized Plan →FAQs
What is the minimum credit score to buy a house?
For most conventional loans, 620. FHA loans go down to 580 with 3.5% down (or 500 with 10% down). VA and USDA loans have no official minimum, but most lenders want to see roughly 620. Individual lenders can and do set higher floors than the program minimums.
Can I buy a house with credit card debt?
Yes, lenders approve buyers with card debt every day. What matters is the effect: card balances raise your utilization (which lowers your score) and their minimum payments count in your debt-to-income ratio (which shrinks how much house you qualify for). Less card debt means a better rate and a bigger approval.
How much will paying off credit cards raise my credit score?
It depends on where your utilization starts. Dropping from 70% utilization to under 10% commonly moves scores 40 to 100 points. Utilization has no memory, so the improvement shows up within a cycle or two of the lower balances being reported.
Should I pay off all credit card debt before applying for a mortgage?
Ideally get utilization under 10% and keep the cards open. You do not need to be at zero: a small reported balance does not meaningfully hurt you. What hurts is high utilization and big minimum payments inflating your DTI. If choosing between a bigger down payment and killing card debt, the card debt usually wins because it improves score and DTI at the same time.
How long before applying should I pay down my cards?
Give it 2 to 3 months minimum so the lower balances get reported to the bureaus and your score updates before the lender pulls it. Starting 6 months out is more comfortable and leaves room to fix report errors.
Does a 620 credit score get a bad mortgage rate?
It gets an expensive one. Rate sheets price by score tier, and the gap between the bottom tier (620 to 639) and the top (760+) often runs more than 1.5 percentage points. On a $350,000 loan that is roughly $374 more per month for the same house.
Should I close my credit cards before applying for a mortgage?
No. Closing cards shrinks your available credit, which pushes utilization up and can drop your score right when you need it. Pay them down, leave them open, and put a small autopaid charge on each to keep them active.
Debt Driver is a debt payoff planning app. We are not a lender, mortgage broker, or credit repair company. All content on this page is for educational purposes only and is not financial, tax, investment, or legal advice. The examples, tables, and calculators shown are illustrative and use standard amortization math; your actual results depend on your real balances, APRs, payment timing, fees, and behavior. Loan program minimums are set by the relevant agencies and can change; individual lenders often apply stricter overlays. The rate tiers and payments shown are illustrative examples, not offers or quotes, and do not include taxes, insurance, or mortgage insurance. Before making significant financial decisions, consider consulting a qualified professional. See our full disclaimer.