April 20, 2026 – Credit scoring is evolving rapidly this year, with mortgage lenders embracing newer models that could help more people qualify for loans.

Fannie Mae and Freddie Mac now allow lenders to use VantageScore 4.0 alongside traditional FICO scores. This model includes positive payment history from rent, utilities, and telecom bills, benefiting borrowers with limited traditional credit. FICO 10T, which analyzes two years of trended data, is also gaining traction and rewards consistent on-time payments and lower utilization over time.

Fannie Mae has removed its long-standing 620 minimum credit score requirement, shifting to a more holistic review of a borrower's full financial picture.

Current Snapshot  

The national average FICO score stands at 714, down slightly due to rising consumer debt and some increases in delinquencies. VantageScore 4.0 averages around 701.

Quick Tips for 2026  

  • Pay all bills on time — this remains the biggest factor.

  • Keep credit card utilization under 30%.

  • Check your free weekly credit reports at AnnualCreditReport.com and fix any errors fast.

  • Ask lenders which scoring model they use.

These updates aim to make credit access fairer while still prioritizing responsible habits. Monitor your reports closely as changes continue rolling out.