Credit scores and credit reports help lenders determine whether you’ll be able to get a mortgage and the interest rate you’ll pay. Most top lenders use FICO scores (from Fair Isaac Corp.), so when FICO announced credit score changes in October 2025, mortgage brokers and prospective buyers listened up. But the initial announcement was short on details. That’s why you’ll want to monitor how the changes play out, especially if you’re planning to buy a home.
In addition, Fannie Mae eliminated its minimum FICO score requirement of 620 for new loan case files as of Nov. 16, 2025. Fannie Mae and Freddie Mac account for the majority of mortgages in the U.S.; these government sponsored enterprises purchase mortgages from lending institutions to increase affordable lending activity. The removal of the minimum credit score is designed to expand access to mortgage credit, especially for borrowers with limited credit histories, according to National Mortgage Professional.
These developments are reminders of the importance of credit. That’s why it’s crucial to monitor your credit reports. Errors can reduce your score inappropriately, increasing your interest rate. That’s a risk no one wants.
What FICO Changed in the Credit Score Process
“Fair Isaac unveiled a new pricing model that will allow lenders like Chase to bypass the credit bureaus when obtaining credit scores,” says Brian Boruszak, senior home lending adviser at Chase Home Lending in the Chicago area. “This means lenders can go directly to Fair Isaac to purchase credit scores without going through the credit bureaus — Equifax, Experian, and Transunion. They’re taking the middleman out of the process.”
Mike Olden, vice president of sales and education at American Reporting Company, says FICO’s announcement outlines a direct-to-lender licensing program that involves resellers, like his company. (Resellers consolidate credit reports from the three credit bureaus into one merged report so that the data is easier for lenders to process.) The Oct. 1 announcement said the program will “optimize credit costs for lenders and borrowers,” but didn’t provide details about how a reseller will accomplish that, he adds.
What the Credit Score Changes Might Mean for You
A natural question is whether any savings or increases would be passed along to borrowers. An additional pass-along cost is possible, Olden says. “FICO is stating that if a lender becomes a participant in this program and the loan is funded, the FICO score cost would go from $4.95 to $33 per score per borrower on funded loans. So, if the lender successfully closes a loan for a borrower, the FICO score cost would go from about $16 to $99.”
Boruszak says if lenders can get credit scores directly from FICO, that could decrease their overall costs, and they might pass savings on to the borrower. “In this scenario, the bureaus would likely consider adjusting their pricing model, offerings, and so on if they wanted to remain competitive.”
Why You Should Monitor FICO Changes and Credit Reports
Problems with credit reports or credit scores were the top issue consumers complained about in 2024, according to a report by the Consumer Financial Protection Bureau. Consumers submitted around 2.7 million complaints about these two areas.
Catching mistakes early can help prevent problems and delays. “Get educated and then work with a professional,” advises Jim DeMarco, loan officer at CMG Home Loans in Seattle. “You want your mortgage broker or loan officer to work with you to understand what is being reported and why.”
How to Monitor Your Credit Report
Olden says checking your credit information on www.annualcreditreport.com is a good start. You can view each of the three credit reports on the site weekly for free. “Go to www.annualcreditreport.com, pull up your credit from each bureau, review it, make sure everything is accurate and up to date, and highlight any questions. Then talk to a loan officer, who will know the underwriting guidelines.”
You can also obtain a credit report with merged information from the three bureaus from resources including Credit Karma, myfico.com, or directly from the credit bureaus, but they may charge for them, Olden says.
If you see errors, you can go directly to Experian, Equifax, or Transunion from annualcreditreport.com to request an update or correction, DeMarco says. You can get things addressed before you go to the lender or work through errors with the lender, he adds.
Credit Report Red Flags
Experts say these red flags are often easy to spot:
- Names, addresses, and birthdates: “For individuals who have a suffix — Jr., Sr., I, II, or III — look for accounts that may belong to that other family member of a different generation,” Olden says. “Often consumers do not use their given suffixes when they apply for credit. That can lead to a mixed file and delays.” In addition, be consistent with the use of middle initials and nicknames, says Jessica Vance, a mortgage broker and real estate agent in San Diego.
- Unrecognizable accounts: Identify accounts you don’t recognize or that may not be reporting correctly, Olden says. Then start the dispute process. Make sure what’s on the credit report belongs to you, says Vance. She recalls her own experience: ”Somebody was taking out credit cards and sending them to an address I wasn’t aware of under my name.” Immediately inform the credit bureaus and the party that extended the credit, she says.
- Recognizable accounts that look incorrect: Check for accounts you recognize but that mistakenly show a balance or don’t look as if they were properly updated. “Recently a loan servicer for a client’s mortgage reported him late,” DeMarco says. The late payment was caused by the transfer of the loan to a new servicer.
- Missing information about early debt payment: “Maybe you paid off a car loan or credit card early,” Vance says. “It doesn’t always reflect immediately.”
If you’re starting the home-buying process, you need to keep up with changes that affect your costs and dispute or fix credit report errors. That way, you’ll be well positioned when you apply for loan preapproval or a mortgage.
Lynn Ettinger has written about real estate and business for more than two decades. Her award-winning work has been published by media outlets and organizations including “Bloomberg Tax,” “Crain’s Chicago Business,” and Deloitte.
