Big news for borrowers! Fannie Mae, Freddie Mac, and FHA have started accepting VantageScore 4.0 for mortgage approvals, with FICO Score 10T expected soon. This marks the biggest shift in credit scoring in years.

Key Updates:  

  • Alternative Data Included: Rent, utility, and telecom payments can now boost your score.

  • Trended Data: New models look at your behavior over 24 months, rewarding consistent on-time payments and lower balances.

  • More Inclusive: Easier access for renters, gig workers, and those with thin credit files.

  • BNPL payments and paid medical debts are increasingly helping credit reports.

U.S. Average Credit Score: Currently around 715.

What You Should Do Now:  

  • Pay all bills on time (rent & utilities matter more).

  • Keep credit card utilization under 30%.

  • Check your scores on both FICO and VantageScore.

  • Consider services that report rent payments.

The fundamentals remain the same — responsible habits win — but the system is now fairer for millions.