As first-time homebuyers hit record low, experts say credit readiness could be key for 2026
ARE YOU LOOKING TO BUY A HOME IN THE NEW YEAR? WELL, YOUR FICO SCORE COULD BE THE KEY TO UNLOCKING THE BEST MORTGAGE OPTIONS. JOINING US THIS MORNING WITH SOME IMPORTANT INSIGHT THAT EVERY POTENTIAL HOUSE HUNTER NEEDS IS A DIRECTOR AT FICO, CHRISTINA ROBINSON. CHRISTINA. GOOD MORNING. OKAY, SO LET’S TALK ABOUT FICO SCORES. EXPLAIN, FIRST OF ALL, WHAT THEY ARE AND HOW ULTIMATELY THEY’RE USED IN THE HOME BUYING PROCESS. WELL, FICO SCORES ARE THE MOST WIDELY USED CREDIT SCORES IN THE UNITED STATES. THINK OF THEM AS YOUR FINANCIAL REPORT CARD. SO ON ONE END, IT SHOWS LENDERS HOW YOU’VE MANAGED CREDIT IN THE PAST, BUT ALSO HELPS THEM PREDICT HOW LIKELY YOU ARE TO REPAY A LOAN IN THE FUTURE. WHEN IT COMES TO MORTGAGE SPECIFICALLY, IT HELPS LENDERS DETERMINE WHETHER YOU QUALIFY FOR THAT MORTGAGE AND THEN ALSO WHAT INTEREST RATE YOU SHOULD PROBABLY GET. TYPICALLY, THE HIGHER THE FICO SCORE, THE BETTER LOAN OPTIONS. YOU KNOW, ONE OF THE THINGS I THINK FOR A LOT OF PEOPLE, THEY CAN PULL THEIR CREDIT SCORES. WE KNOW THAT YOU CAN GET A FREE CREDIT SCORE EVERY YOUR CREDIT REPORT EVERY YEAR. THE FICO SCORE ISN’T NECESSARILY ON THAT CREDIT REPORT. SO WHAT MAKES THE FICO SCORE DIFFERENT FROM OTHER CREDIT SCORES? IT CAN BE SO CONFUSING. THERE ARE SO MANY CREDIT SCORES OUT THERE, BUT WHAT SETS FICO SCORES APART IS THE FACT THAT THIS IS THE SCORE THAT 90% OF TOP U.S. LENDERS TRUST FOR IT’S PROVEN PERFORMANCE, RIGHT? AND IN THE MORTGAGE SPACE, IT’S VERY EXCITING. MORE AND MORE MORTGAGE LENDERS ARE STARTING TO TAP OUR NEWEST AND MOST PREDICTIVE CREDIT SCORES, CALLED FICO SCORE 20. IT USES TRENDED DATA. IT ALSO USES OTHER INFORMATION SUCH AS UTILITY PHONE AND RENTAL. MILLIONS OF CONSUMERS PAY THEIR RENT ON TIME, AND SO EXCITING TO SEE IT AS PART OF A CREDIT SCORE. AND WE DO UNDERSTAND THAT THE BETTER THE SCORE, THE LESS YOU ULTIMATELY PAY IN INTEREST. BUT WHAT ARE SOME THINGS FOR PEOPLE WHO ARE SAYING, OKAY, HEY, I HAVE MY SCORE, IT’S LOW. WHAT CAN THEY DO TO INCREASE THEIR NUMBERS? WELL, THE FICO SCORE IS THEIR DYNAMIC. YOUR FICO SCORE TODAY DOESN’T HAVE TO BE YOUR FICO SCORE TOMORROW. SO LET’S TALK ABOUT IT. MAKE THOSE PAYMENTS ON TIME. RIGHT. CHIP AWAY. THOSE PAYMENTS. SET THOSE AUTO REMINDERS OR AUTO PAY. AND THEN ALSO CAN YOU PAY A LITTLE BIT MORE ON YOUR LOAN BALANCES OR YOUR CREDIT CARD BALANCES? THAT’S CALLED LOWERING UTILIZATION. IT’S A BIG PART OF FICO SCORE. AND IT’S REALLY HELPFUL IN IMPROVING YOUR FICO SCORE. AND THEN FINALLY, DON’T SEEK NEW CREDIT UNLESS YOU ABSOLUTELY NEED IT. THAT RESULTS IN A HARD CHECK. SO THAT’S SOMETHING TO KEEP IN MIND. AND ALSO, WE’RE NOT STRIVING FOR PERFECTION. WE DO NOT NEED A FICO SCORE. 750 AND ABOVE IS CONSIDERED PRIME. OKAY, SO FOR PEOPLE WHO WANT TO KNOW THEY MAY NOT HAVE SEEN THEIR SCORE, HOW CAN THEY ACTUALLY SEE THEIR SCORE? YEAH. SO TO CHECK THE REAL DEAL, THE FICO SCORE THAT LENDERS ACTUALLY USE AND DECISION ON, WE HAVE A SUPER EASY WAY TO DO THAT. IT’S FREE. YOU CAN DO IT AT MYFICO.COM SLASH FREE. I WANT TO BUST A MYTH HERE. YOU TOUCHED UPON IT A LITTLE BIT EARLIER, BUT ACTUALLY CHECKING YOUR FICO SCORE REGULARLY, IT DOES NOT LOWER IT. IT’S ACTUALLY REALLY GOOD. WE KNOW THAT PEOPLE WHO CHECK THEIR FICO SCORES ACTUALLY TEND TO HAVE HIGHER FICO SCORES, SO CHECK IT OFTEN. AND I THINK THAT’S A REALLY USEFUL TIP. OKAY, I’VE JUST TYPED IT IN MYFICO.COM FREE, SO I’LL BE
As first-time homebuyers hit record low, experts say credit readiness could be key for 2026
Updated: 2:53 PM PST Dec 3, 2025
With first-time homebuyers dropping to a record low this year and the average new buyer now reaching 40 years old, experts say preparing your credit early may be one of the most important steps you can take if you’re hoping to buy a home in 2026. As housing costs continue to challenge families across California and interest rates remain unpredictable, understanding how your credit is evaluated could make a major difference when it’s time to apply for a mortgage.Click here to check your FICO scoreIf you plan to start the homebuying process in the next couple of years, your FICO Score—one of the tools lenders rely on most—will likely play a significant role. These scores are used by the vast majority of major lenders to help determine what loan options you qualify for and the interest rate you’ll receive. In many cases, even a small improvement in your credit score can translate into thousands of dollars in savings over the life of a 30-year mortgage.Kristina Robinson, Director at FICO, joined KCRA 3 on Wednesday morning. Click the video above to watch the full interview. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
With first-time homebuyers dropping to a record low this year and the average new buyer now reaching 40 years old, experts say preparing your credit early may be one of the most important steps you can take if you’re hoping to buy a home in 2026.
As housing costs continue to challenge families across California and interest rates remain unpredictable, understanding how your credit is evaluated could make a major difference when it’s time to apply for a mortgage.
Click here to check your FICO score
If you plan to start the homebuying process in the next couple of years, your FICO Score—one of the tools lenders rely on most—will likely play a significant role.
These scores are used by the vast majority of major lenders to help determine what loan options you qualify for and the interest rate you’ll receive.
In many cases, even a small improvement in your credit score can translate into thousands of dollars in savings over the life of a 30-year mortgage.
Kristina Robinson, Director at FICO, joined KCRA 3 on Wednesday morning. Click the video above to watch the full interview.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel