The acceptability of credit scores in mortgage lending remains a cornerstone of the United States housing market. Lenders continue to prioritize credit history and creditworthiness as critical factors in assessing loan eligibility, with 95% of conventional mortgages requiring a credit check, according to 2023 data from the Consumer Financial Protection Bureau (CFPB). While alternative data sources and underwriting models have gained traction, traditional credit scores—particularly FICO scores—still dictate interest rates, down payment requirements, and loan terms for the majority of borrowers.

The persistence of credit score reliance stems from their proven correlation with repayment risk. A 2022 study by the Federal Reserve found that borrowers with FICO scores below 620 face interest rate premiums averaging 2.5 percentage points compared to those with scores above 740, significantly increasing borrowing costs. Additionally, 89% of mortgage applications in 2023 were processed through automated underwriting systems that heavily weight credit data, as reported by the Mortgage Bankers Association. While some lenders now incorporate non-traditional factors like cash flow or rental history, these are supplementary to—not replacements for—credit scores. Regulatory frameworks, such as the Equal Credit Opportunity Act, also reinforce the role of credit history in fair lending practices. Thus, while innovation in underwriting exists, credit scores remain indispensable for assessing mortgage risk and ensuring market stability.