Every 20 points in credit score = 0.25-0.5% in interest rate.
On a $600K California mortgage, that's $100-$200/month. $36K-$72K over 30 years.
I'm Bill McCoy (CA DRE #01212512). I help clients boost scores before applying. Here's how to do it.
Credit Score Ranges and Rates (2026)
| Score | Rate (30-yr fixed) | Payment ($600K) | Cost over 30 years |
|---|---|---|---|
| 760+ | 6.00% | $3,597 | $1,294,920 |
| 700-759 | 6.25% | $3,694 | $1,329,840 |
| 680-699 | 6.50% | $3,792 | $1,365,120 |
| 660-679 | 6.875% | $3,943 | $1,419,480 |
| 640-659 | 7.25% | $4,092 | $1,473,120 |
| 620-639 | 7.75% | $4,292 | $1,545,120 |
From 640 to 760: Save $495/month = $178K over 30 years.
The 30-Day Quick Fix Plan
Pull your credit from all 3 bureaus at AnnualCreditReport.com. Dispute errors right away -- wrong accounts, incorrect late payments, duplicates, old collections past 7 years.
Pay down credit card balances to under 30% usage. If your limit's $10,000 and you owe $6,000 (60%), pay down to $2,900 (29%). That alone can boost your score 20-30 points.
Ask for credit limit increases. Call your card issuers, request higher limits, and don't spend the extra room. It lowers your usage ratio instantly.
Become an authorized user on a family member's old account with perfect payment history. Their history shows up on your report. Score jumps 10-20 points.
The 60-Day Plan
Do everything in the 30-day plan, plus:
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Pay off collections strategically. Under $100 -- just pay it. Over $500 -- negotiate "pay for delete" so they remove it from your report entirely. Don't just pay without negotiating. Paid collections still hurt your score.
Set up automatic payments. One missed payment = 100+ point drop. Automate everything.
Don't apply for new credit. Every application costs you 5-10 points. Freeze credit shopping until after your mortgage closes.
The 90-Day Plan
Everything above, plus:
Pay down cards to under 10% usage. Under 30% is good. Under 10% is great. On a $10,000 limit, keep the balance at $900 or less.
Keep old credit cards open even if you don't use them. Average age of accounts is a scoring factor. Don't close them.
Rapid Rescoring
Your lender can request an expedited credit report update from the bureaus. If you've paid down balances or fixed errors but they haven't hit your report yet (normally takes 30-60 days), rapid rescoring gets it updated in 3-5 days.
Cost is $25-$100 per bureau. Your lender orders it -- you can't do it yourself.
Broker's Tip: If you're borderline on qualifying, rapid rescoring can save your loan. It's worth every penny.
What Hurts Your Score
- Late payments: 30 days late = -50 to -100 points
- High credit card balances: Over 50% usage = bad. Over 70% = very bad.
- Collections: Even $100 collections tank your score
- Hard inquiries: -5 to -10 points per application
- Closing old accounts: Reduces available credit, increases usage ratio
What Doesn't Hurt Your Score
Checking your own credit = soft inquiry (doesn't count). Mortgage shopping within 14-45 days = counts as ONE inquiry. Paying off loans early = no negative impact.
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Target Scores by Loan Type
FHA: 580 minimum (620 for best rates)
Conventional: 620 minimum (740+ for best rates)
VA: No minimum (lenders want 620+)
Jumbo: 700+ (740+ for best rates)
Start working on your score 3-6 months before applying. That gives time for changes to show up across multiple reporting cycles. If you're applying next month, pay down cards now, skip new credit applications, and ask your lender about rapid rescoring.
Get Pre-Approved Once Your Score Improves
Once you've optimized your score, lock in your best rate.
Better Offers Inc | CA DRE #01212512