Mortgage  Question?
What Credit Score Model Do Mortgage Lenders Use?

What credit score model do lenders use when you apply for a mortgage?

Michael Jensen
, Mortgage and Finance Guru
Edited by Harry Jensen

When you apply for a mortgage, lenders typically pull your credit report from the three main credit bureaus: Experian, Equifax and TransUnion. Each credit bureau uses a different FICO model to determine your credit score. We outline the models used by the credit bureaus below:

Experian: FICO Score 2 (also known as Experian / Fair Isaac Risk Model v2)

Equifax: FICO Score 5 (also known as Equifax Beacon 5.0)

TransUnion: FICO Score 4 (also known as TransUnion FICO Risk Score 04)

The credit score models take into account multiple factors including your current and past credit accounts, payment history, credit capacity (e.g., how much you can borrow across all of your accounts) and credit events such as a collection, charge off, bankruptcy, short sale, default or foreclosure.

There are variations between the different FICO models but the underlying inputs and scoring factors are relatively similar. Making your loan payments on time, maintaining low credit utilization and limiting the number of credit accounts you have open leads to higher credit scores for all FICO scoring models.

Although the FICO models utilize a consistent methodology, there may be differences in your credit scores across the three main credit bureaus. Score differences may be attributable to inconsistent account information or subtle differences in how accounts or credit events are weighted by the models.

For example, it is not uncommon for an account to appear on your credit report provided by one of the bureaus but not the other two. The presence or absence of certain account information can impact your credit score for that bureau and create differences in your scores.

Review What Credit Score is Required for a Mortgage?

Given the possibility that you could have a different credit score for each credit bureau you may be wondering what score lenders use when you apply for a mortgage? If you have three different credit scores, the lender uses your middle score to determine you mortgage pricing and ability to qualify for the loan. If two of your credit scores are the same, the lender uses that score, regardless of how that score compares to the third score.  If you only have two credit scores, the lender uses the lower score for your application.

The example below demonstrates the credit score that mortgage lenders use when you have different score across the three credit bureaus. In this scenario, the lender uses the middle of the three scores -- 660 -- for the mortgage application.

Example 1: Credit Score Used When You Have Three Different Scores

Experian: 640

Equifax: 660

TransUnion: 680

The second example below shows the credit score mortgage lenders use when two of the scores are the same.

Example 2: Credit Score Used When Two Scores Are the Same

Experian: 680

Equifax: 680

TransUnion: 640

In this case, the lender uses the credit score that is repeated -- 680 -- even though the third score is lower.

When two people apply for a mortgage, the lender uses the average median score for the applicants to evaluate their application.  For example, if your middle credit score is 640 and your co-borrower's middle score is 680, the lender uses the average score of 660 to determine your mortgage rate and to assess the loan programs you are eligible for. If an applicant only has two credit scores, the lender uses the lower score to calculate the average score.

The higher the credit score used by the lender, the lower your mortgage rate and monthly payment. Additionally, you are typically required to meet a minimum credit score to qualify for certain mortgage programs.

This is why it is important to review your credit report and monitor your credit score before you apply for a mortgage. You can use credit monitoring services such as CreditKarma, AnnualCreditReport or to check your credit score for free, without impact your score.

You can also use these services to identify and proactively correct errors on your credit report. This process can be complicated and time-consuming so we recommend that you check your credit report and score three-to-six months before you plan to apply for a mortgage.

It is important to highlight that the credit scores provided by these free monitoring services and apps are based on the VantageScore model, which is different than the FICO models used by the credit bureaus when a mortgage lender orders your credit report. The VantageScore model tends to be less precise so there may be differences between your credit score according to the free apps and your credit score when you apply for a mortgage.

Despite these potential discrepancies, your score on the credit monitoring apps should be similar to your FICO score. You can also use the apps to monitor changes in your score before you select a lender and start the mortgage process.

Current Mortgage Rates in Ashburn, Virginia as of May 22, 2024
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Rate data provided by Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes, insurance premiums or private mortgage insurance if applicable. Actual payments will be greater with taxes and insurance included. Read through our lender table disclaimer for more information on rates and product details.

In conclusion, although the model used to determine your credit score is complicated and involves multiple inputs, managing your credit before you apply for a home loan is relatively straightforward. Paying your bills on time, avoiding significant increases in credit account balances and limiting your borrowing capacity should help your credit score and best position you to get approved for your mortgage.


"B3-5.1-01, Credit Score Versions."  Selling Guide: Fannie Mae Single Family.  Fannie Mae, August 7 2019.  Web.

"Selling Guide Announcement, Credit Score Eligibility in DU."  SEL LL-2021-08.  Fannie Mae, September 1 2021.  Web.

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About the author
Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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