This guide covers credit score requirements in the US, UK, Canada and Australia. It is educational content, not financial advice.
Your credit score is one of the first things a mortgage lender looks at. It affects whether you get approved, which loans you can choose from and, just as importantly, the interest rate you pay for decades.
The good news is that you do not need a perfect score to buy a home. In this guide you will learn the typical minimum scores by loan type and country, how much your score can change your monthly payment, and practical steps to improve your credit before you apply. If you are new to home loans, start with our guide on how a mortgage works.
What Is a Credit Score?
A credit score is a number that summarizes how you have handled credit in the past. Credit bureaus build it from your credit report, which records things like loans, credit cards, payment history and missed payments. Lenders use it to estimate how likely you are to repay a new loan on time.
A higher score signals lower risk. That usually means easier approval, more loan options and lower interest rates. A lower score does not always mean a rejection, but it often means higher costs or stricter conditions.
Credit Score Ranges by Country
Credit scoring works differently in each country, so a “good” number in one place can mean something completely different in another.
| Country | Main credit bureaus | Typical score range |
|---|---|---|
| United States | Equifax, Experian, TransUnion | FICO: 300 to 850 |
| United Kingdom | Experian, Equifax, TransUnion | Varies by bureau (for example 0 to 999 at Experian) |
| Canada | Equifax, TransUnion | 300 to 900 |
| Australia | Equifax, Experian, illion | Varies by bureau (for example 0 to 1,200 at Equifax) |
In the US and Canada, lenders often refer to specific score cutoffs. In the UK and Australia, lenders rely more on their own internal scoring systems, so there is rarely a single published minimum.
Minimum Credit Scores in the United States
The US has the clearest score requirements, because many loan programs publish guidelines. Here are the typical minimums lenders use:
| Loan type | Typical minimum score | Notes |
|---|---|---|
| Conventional loan | Around 620 | Backed by Fannie Mae or Freddie Mac. Better rates usually start from the 700s. |
| FHA loan | 580 with 3.5% down | Scores from 500 to 579 may qualify with at least 10% down. |
| VA loan | No official minimum | Many lenders look for around 620. Available to eligible veterans and service members. |
| USDA loan | No official minimum | Many lenders look for around 640. For eligible rural and suburban areas. |
| Jumbo loan | Often 700 or higher | For loans above conforming limits; requirements are stricter. |
Keep in mind that these are general guidelines. Individual lenders can set higher minimums, often called “overlays”, so if one lender says no, another may still say yes.
Credit Requirements in the UK, Canada and Australia
United Kingdom
UK lenders do not publish a minimum credit score. Instead, each lender runs your credit file through its own scoring model and affordability checks. What matters most is the detail in your report:
- A record of paying bills and credit on time.
- No recent defaults, County Court Judgments (CCJs) or missed payments.
- Being registered on the electoral roll at your current address, which helps lenders confirm your identity.
- Reasonable use of available credit, rather than maxed out cards.
Borrowers with past credit problems can still find mortgages through specialist lenders, usually at higher rates or with a larger deposit.
Canada
In Canada, scores range from 300 to 900. For mortgages with mortgage default insurance, which is required when your down payment is below 20%, at least one borrower typically needs a score of 600 or higher. Major banks usually prefer scores in the high 600s or above for their best rates. Borrowers with lower scores may turn to alternative or “B” lenders, which accept more risk but charge higher rates and fees.
Australia
Australian lenders assess your whole credit report rather than relying on a single cutoff. Since the introduction of comprehensive credit reporting, reports show your repayment history on credit cards, loans and some other accounts over the past two years, not just negative events. Lenders look for consistent on time repayments, limited recent credit applications and no defaults. Borrowers with weaker credit may qualify with non bank or specialist lenders.
How Your Credit Score Affects Your Mortgage Rate
Getting approved is only half the story. Your score also shapes the rate you are offered, and small differences in rate add up over the life of a loan.
The example below shows a $300,000 loan over 30 years. The rates are illustrations to show the effect of score bands, not current market rates.
| Illustrative credit profile | Example rate | Monthly payment | Total interest over 30 years |
|---|---|---|---|
| Excellent credit | 6.25% | $1,847 | about $365,000 |
| Good credit | 6.50% | $1,896 | about $382,600 |
| Fair credit | 6.75% | $1,946 | about $400,500 |
| Limited or weaker credit | 7.25% | $2,047 | about $436,800 |
In this example, the gap between excellent and weaker credit is about $200 a month and more than $70,000 in interest over 30 years. On top of that, borrowers with lower scores often pay more for mortgage insurance when their deposit is small.
This is why improving your score before applying can be one of the most valuable things you do in the whole home buying process.
What Makes Up Your Credit Score?
The exact formulas are private, but the main ingredients are similar everywhere. In the US, the widely used FICO model weighs five factors:
- Payment history (about 35%). Paying on time is the single most important factor. Late payments, defaults and collections can hurt your score for years.
- Amounts owed (about 30%). This includes your credit utilization, the share of your available credit you are using. Lower is better.
- Length of credit history (about 15%). Older accounts help show a longer track record.
- New credit (about 10%). Several applications in a short time can lower your score temporarily.
- Credit mix (about 10%). Managing different types of credit, such as cards and installment loans, can help slightly.
UK, Canadian and Australian scoring models use similar information, even if the weights and scales differ.
How to Improve Your Credit Score Before Applying
Improving your credit takes time, so ideally start six to twelve months before you plan to apply. These steps work in every country:
1. Check your credit reports
Get your reports from each major bureau in your country. In the US, you can access free reports through the official annual credit report service. In the UK, Canada and Australia, free access is also available from the bureaus or through approved services. Look for errors such as accounts you do not recognize or incorrect late payments.
2. Dispute any mistakes
If you find an error, raise a dispute with the credit bureau. Correcting a wrong late payment or a duplicate account can lift your score noticeably.
3. Pay every bill on time
Set up automatic payments or reminders. Even one missed payment shortly before you apply can cause problems.
4. Lower your credit utilization
Try to keep card balances well below your limits. Many experts suggest staying under 30% of your available credit, and under 10% is even better for your score.
5. Avoid new credit applications
Hold off on new credit cards, car loans or buy now pay later plans in the months before a mortgage application. Each application can leave a mark on your file.
6. Keep older accounts open
Closing an old credit card can shorten your credit history and raise your utilization. If an account has no annual fee, it may be better to keep it open and use it lightly.
7. Register to vote (UK)
In the UK, being on the electoral roll at your current address is a simple step that can make a real difference to how lenders view your application.
What If You Have Little or No Credit History?
Some buyers have no bad marks at all, but very little on their report. This is common for young people, recent immigrants and anyone who has always paid in cash. Lenders call this a “thin file”, and it can make approval harder simply because there is not enough information to judge you.
If this sounds like you, a few steps can help build a track record:
- Open one basic credit card and use it for small regular purchases, paying the full balance every month.
- Make sure regular bills are reported. In some countries, rent, phone and utility payments can be added to your credit file through the provider or a reporting service.
- Consider a credit builder product, such as a secured card, if you cannot get a standard card yet.
- Give it time. Most scoring models need at least six months of activity before they can produce a reliable score.
In the US, some lenders also accept “nontraditional” credit, such as a record of on time rent and utility payments, for certain loan programs.
Can You Buy a House With Bad Credit?
Often, yes. It usually just costs more or requires more preparation. Options may include:
- Government backed loans in the US, such as FHA loans, which accept lower scores.
- Specialist or alternative lenders in the UK, Canada and Australia that work with past credit problems.
- A larger deposit, which lowers the lender’s risk and can offset a weaker score.
- A co-borrower with stronger credit, such as a partner. Both people are fully responsible for the loan, so this is a serious commitment.
Be cautious with any lender that promises guaranteed approval regardless of credit. High rates and fees on a poor credit mortgage can make a home much harder to afford. In many cases, spending a year improving your credit can save you far more than it costs to wait.
Your Credit Score Is Not the Only Factor
A strong score helps, but lenders also look closely at:
- Your income and job stability.
- Your debt to income ratio, meaning how much of your income already goes to debt payments.
- Your deposit or down payment.
- Your savings and reserves after the purchase.
Our guide on how much house you can afford explains how lenders combine these factors to decide how much you can borrow.
Frequently Asked Questions
What is the minimum credit score to buy a house in the US?
It depends on the loan. FHA loans can accept scores of 580 with a 3.5% down payment, or as low as 500 with 10% down. Conventional loans typically require around 620. Individual lenders may set higher minimums.
Does checking my own credit score lower it?
No. Checking your own score or report is a “soft” check and does not affect your score. Only “hard” checks from credit applications can have a small, temporary effect.
Do mortgage lenders check all three credit bureaus?
In the US, many mortgage lenders pull reports from all three bureaus and often use the middle score. In other countries, lenders may check one or more bureaus depending on their policies.
How long does it take to improve a credit score?
Small improvements, such as lowering card balances, can show up within one or two months. Recovering from missed payments or defaults takes longer, often a year or more of consistent on time payments.
Will shopping around for a mortgage hurt my credit?
In the US, scoring models usually treat several mortgage inquiries within a short period as a single inquiry, so comparing lenders has little impact. In other countries, ask lenders whether they use a soft check for quotes before you apply formally.
Does a joint application use both credit scores?
Yes. Lenders review both applicants’ credit reports. In the US, many lenders base the decision on the lower of the two middle scores, so one weaker score can affect the rate for both of you. In other countries, a partner’s poor history can also limit your options, even if your own credit is strong.
The Bottom Line
You do not need perfect credit to buy a house, but your score has a big influence on your options and the rate you pay. In the US, many loans are available from scores around 580 to 620. In the UK and Australia, lenders focus on the detail in your credit report, and in Canada scores of 600 or more are a common starting point for insured mortgages.
Check your reports early, fix any errors, pay every bill on time and keep your balances low. A few months of preparation can mean a lower rate and thousands saved over the life of your mortgage. If you are unsure where you stand, a licensed mortgage adviser or broker in your country can review your situation before you apply.
Disclaimer: This article is for general educational purposes only and does not constitute financial, legal or tax advice. Credit scoring models, lender requirements and loan programs differ by country and lender and change over time. Always confirm details with a qualified professional and your lender before making decisions.