When purchasing a home, having a healthy credit score is essential. You work hard to improve your credit score to get a mortgage, but what happens to your credit once you have your mortgage?

An Early Hit

Your credit may suffer initially during the early portion of your mortgage. Credit score represents your ability to pay back debt, so of course after taking out the biggest loan most people ever recieve, you have to prove you have ability to pay it back. It would be ideal to avoid making any major purchases within about six months of obtaining your loan. You will also need to be sure you make your payments on time to get your credit up to pre-mortgage level.

It Can Improve Credit Score Mix

If your credit report consists of mainly credit card loans, your credit most likely won’t be adequate. If you make payments on time the debt acquired through purchasing a home is considered responsible debt, so a mortgage can mix up the type of debt you have. The mixture of installment debt (mortgage) and revolving debt (credit card loans) represents about 10% of your credit score.

Good News:

A consistency in paying your mortgage along with other bills brings your credit score back up from any initial damage. So as long as you stay on time with payments, a mortgage should not put you in a hole when it comes to your credit!


We hope this helps keep your credit level and your mortgage easy throughout the process! If you have any more questions, contact the Housing Buzz Team today!