⚠️ 3 Lies Homebuyers Still Believe About Credit Scores

💡 3 Credit Score Myths That Could Cost You Your Dream Home

⚠️ 3 Lies Homebuyers Still Believe About Credit Scores

When it comes to buying a home, few topics cause as much confusion as credit scores. Between outdated advice and online myths, many homebuyers still make avoidable mistakes that can delay — or even derail — their mortgage approval. Let’s debunk the top three credit score lies that keep borrowers from success.

Lie #1: You Need Perfect Credit to Get a Mortgage

This one stops too many potential buyers before they even apply. The truth? You don’t need an 800 score to qualify.

·FHA loans can approve borrowers with scores as low as 580.

·Conventional lenders often accept scores in the mid-600s with compensating factors.

The focus isn’t perfection — it’s consistency and responsibility. Late payments hurt more than low balances, and one or two blemishes won’t ruin your chances if the rest of your financial profile is strong.

Lie #2: Checking Your Own Credit Hurts Your Score

Another myth that refuses to die. When you check your credit, it’s considered a soft inquiry, which has zero impact on your score.
Hard inquiries — like when you apply for new credit cards or multiple loans — are the ones that can temporarily lower your score by a few points.

Pro tip: Use free tools like Annual Credit Report: https://www.annualcreditreport.com/index.action

Experian, Trans Union, and Equifax all have online access now where you can track your progress and dispute errors before applying for a mortgage.

Here are the three major U.S. credit‐reporting agencies where clients can file disputes and check status:

1.Equifax — https://www.equifax.com/personal/credit‐report-services/credit‐dispute/ Equifax+1

2.Experian — https://www.experian.com/disputes/main.html Experian

3.TransUnion — https://www.transunion.com/credit-disputes/dispute-your-credit transunion.com+1

Lie #3: Paying Off Debt Instantly Fixes Your Score

Paying off debt helps — but it’s not a magic button. Credit scores update when creditors report new balances, which can take 30–60 days.
Lenders also look at your credit utilization ratio, so closing paid-off accounts too soon can actually hurt your score by lowering your available credit.

A smarter move? Keep your oldest accounts open and maintain low balances. That builds both trust and credit depth, two major factors underwriters love.

✅ Final Takeaway

Credit myths cause fear — and fear keeps people from homeownership.
Your credit report tells a story of responsibility, not perfection. With the right loan program and a little preparation, your dream of homeownership can happen sooner than you think.

👉 Ready to see where you stand? Let Medallion Funds review your credit profile and guide you toward the best loan options available.

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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory