These days, a good credit score affects more than the cost to borrow money. It can also affect your employment prospects, apartment choices and how much you’ll pay for insurance. Simply put, the higher your credit score is, the less risk you present to the business world.
For decades, FICO credit scores were the industry standard. But these scores are based on debt repayment histories. It can be difficult to build a credit score if you haven’t borrowed money, and it can be difficult to borrow money if you don’t have a credit score!
Fortunately, there is another credit scoring model in use, and it’s gaining traction. The VantageScore, created by the major credit bureaus, considers payment histories for rent, utilities, cell phones and other obligations. This makes it possible for someone to have a credit score without having a debt repayment history.
Here’s the good news for Northwestern Wisconsin home buyers: VantageScore credit ratings can be used in mortgage underwriting. As of 2025, the Federal Housing Finance Agency requires VantageScore credit ratings to be allowed for all mortgages sold to, or guaranteed by, Freddie Mac and Fannie Mae. To put this in perspective, Freddie Mac and Fannie Mae support about 70% of all U.S. residential mortgages!
You probably have a VantageScore already, even if you’ve never heard of it. The current VantageScore 4.0 model rates the payment habits of 94% of all adults.
There are some exclusions. Credit bureaus and credit rating companies only know about your payment habits if they are reported, or accessible through data aggregation systems. Payments made to private individuals for rent or debt obligations may not be viewable by credit scoring algorithms.
Good credit opens doors of opportunity! Homebuyers should view their credit bureau histories and correct any errors. Checking your FICO score and VantageScore will reveal your credit rating strength, and give you insights for improving it.
When you’re ready to find a mortgage lender, call us for a personal referral! Six Lakes Realty is a locally owned family business with over 45 years of experience. Contact us today for friendly, hometown service!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com