Simply put your credit score represents your ability to pay your debt.  Credit scores range from 400-850. The higher, the better! The average scores range from 660-720. A score of 580 or higher is generally required for a home mortgage.  However, it is still possible to get mortgage with a lower score. You will need a larger down payment though. It is even possible to get a mortgage without a credit score if you can show that you pay your rent and utilities on-time. Your credit score can affect your interest rate. The higher your credit score, the lower your rate will be. It will also be easier to close your mortgage loan faster which can be very important when buying a home. It is important to keep your credit cards at 10 to 30% of your credit limit is to maximize your credit score.  It is also important to have different types of debt. (mortgage, installment loans like a car, and 1 or 2 credit cards).  Easy does it though, you don’t want to have to many credit cards!