Yes, you can buy a house with a 627 credit score, as it meets the minimum requirement for many loan types, including FHA and some conventional loans. However, with this score, you will likely face higher interest rates, more stringent lender requirements, and potentially higher down payments.
Key takeaways. You can get a mortgage with a credit score as low as 620, 580 or even 500, depending on the type of loan. While you might be eligible for a mortgage with a low credit score, you'll pay a higher interest rate for the loan.
Poor (600-649):
While getting a loan is more challenging, some lenders might offer mortgages with higher interest rates and larger down payments.
To go from a 600 to a 700 credit score, focus on the biggest factors: pay all bills on time, significantly lower your credit card balances (aim for under 30%, ideally under 10% utilization), avoid opening many new accounts, and check your credit reports for errors. Consistently applying these habits, especially timely payments, builds positive history, while reducing debt lowers your utilization, driving your score up steadily over months.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
To buy a house, you generally need a credit score of at least 620 for a conventional loan, though government-backed loans like FHA allow scores as low as 500-580, and higher scores (740+) get you the best interest rates. Requirements depend on the lender and loan type, with FHA loans being more lenient for lower scores (500-580), while USDA loans often need 640+, and VA loans usually look for 620+.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
Conventional Loans
Conforming loans typically require a minimum credit score of 620, though some may require a credit score of 660 or better.
Ways to improve your credit score
Paying your loans on time. Not getting too close to your credit limit. Having a long credit history. Making sure your credit report doesn't have errors.
How does my income affect my credit score? Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.
With a 627 credit score, you might be able to get a traditional credit card. While most credit card issuers don't publish minimum credit scoring standards, some will approve applicants in the fair credit range.
FHA mortgage rates are not directly tied to your credit score. However, a credit score of 620 could qualify you for an FHA loan with a rate of 4.125%.
The 15/3 credit card payment method is a strategy to potentially boost your credit score by making two payments per billing cycle: one about 15 days before your statement closes (to lower reported utilization) and another around 3 days before the payment due date (to cover the rest and avoid late fees), though its actual impact on credit scoring is debated. It works by keeping your reported balance lower when the card issuer reports to bureaus, but experts note the specific timing isn't magical, and focusing on the reporting date is key.
Nationwide, the average credit score is 715. State by state, however, the numbers are all over the map. The average U.S. credit score is 715, according to FICO's Score Credit Insights, which examined data from April 2025.
Both saving and debt repayment are critical for long-term financial health. An emergency fund should be established before aggressively paying off debt to protect against unexpected expenses. High-interest debt, such as credit cards or payday loans, often warrants faster repayment to save on interest.
For example, recovering from a few recent hard credit inquiries might not take as long as working back from late payments, which can stay on your credit reports for years. “On average, it may take anywhere from 12 to 24 months of responsible credit management to see a significant improvement in your credit score.