Credit scores and credit reports help lenders determine whether you’ll be able to get a mortgage and the interest rate you’ll pay. Most top lenders use FICO scores (from Fair Isaac Corp.). So, when FICO announced credit score changes in October 2025, mortgage brokers and prospective buyers listened up. But the initial announcement was short on details. That’s why you’ll want to monitor how the changes play out, especially if you’re planning to buy a home.
Credit reports are another critical area to watch. Errors can reduce your score inappropriately, increasing your interest rate. That’s a risk no one wants.
What FICO Changed in the Credit Score Process
“Fair Isaac unveiled a new pricing model that will allow lenders like Chase to bypass the credit bureaus when obtaining credit scores,” says Brian Boruszak, senior home lending adviser at Chase Home Lending in the Chicago area. “This means lenders can go directly to [FICO] to purchase credit scores without going through Equifax, Experian, and Transunion. They’re taking the middleman out of the process.”
Mike Olden, vice president of sales and education at American Reporting Company, says FICO’s announcement outlined a direct-to-lender licensing program that involves resellers. (Resellers consolidate credit reports from the three credit bureaus into one merged report so that lenders can process it more easily.) The Oct. 1 announcement said the program will “optimize credit costs for lenders and borrowers.” But it didn’t provide details about how a reseller will accomplish that, he adds.
What the Credit Score Changes Might Mean for You
A natural question is whether any savings or increases would be passed along to borrowers. An additional pass-along cost is possible, Olden says. “FICO is stating that if a lender particiates in this program and the loan is funded, the FICO score cost would increase from $4.95 to $33 per score per borrower on funded loans. So, if the lender successfully closes a loan for a borrower, the FICO score cost would go from about $16 to $99.”
Boruszak says if lenders can get credit scores directly from FICO, that could decrease their overall costs. They might pass savings on to the borrower. “In this scenario, the bureaus would likely consider adjusting their pricing model, offerings, etc., if they wanted to remain competitive.”
Why You Should Monitor FICO Changes and Credit Reports
Problems with credit reports or credit scores were the top issue consumers complained about in 2024, according to the Consumer Financial Protection Bureau. Consumers submitted around 2.7 million complaints about these two areas.
Catching mistakes early can help prevent problems and delays. “Get educated and then work with a professional,” advises Jim DeMarco, branch manager and loan officer at CMG Home Loans in Seattle. “You want your mortgage broker or loan officer to work with you to understand what is being reported and why.”
How to Monitor Your Credit Report
Olden says checking your credit information on annualcreditreport.com is a good start. You can view each of the three credit reports on the site weekly for free. “Go to annualcreditreport.com, pull up your credit from each bureau, review it, make sure everything is accurate and up to date, and highlight any questions. Then talk to a loan officer, who will know the underwriting guidelines.”
You can also obtain a credit report with merged information from the three bureaus. Options include Credit Karma, myfico.com, or directly from the credit bureaus, but they may charge for them, Olden says.
If you see errors, you can navigate to Experian, Equifax, or Transunion from annualcreditreport.com to request an update or correction, DeMarco says. You can address problems before you go to the lender or work through errors with the lender, he adds.
Credit Report Red Flags
Experts say these red flags are often easy to spot:
- Names, addresses, and birthdates: “For individuals who have a suffix — Jr., Sr., I, II, or III — look for accounts that may belong to that other family member of a different generation,” Olden says. “Often consumers do not use their given suffixes when they apply for credit. That can lead to a mixed file and delays.” In addition, be consistent with the use of middle initials and nicknames, says Jessica Vance, a mortgage broker and real estate agent in San Diego.
- Unrecognizable accounts: Identify accounts you don’t recognize or that may not be reporting correctly, Olden says. Then start the dispute process. Vance recommends making sure what’s on the credit report belongs to you. She recalls her own experience. ”Somebody was taking out credit cards and sending them to an address I wasn’t aware of under my name.” Immediately inform the credit bureaus and the party that extended the credit, she says.
- Recognizable accounts that look incorrect: Check for accounts you recognize but that mistakenly show a balance or look as if they weren't properly updated. “Recently a loan servicer for a client’s mortgage reported him late,” DeMarco says. The late payment stemmed from the transfer of the loan to a new servicer.
- Missing information about early debt payment: “Maybe you paid off a car loan or credit card early,” Vance says. “It doesn’t always reflect immediately.”
If you’re starting the home-buying process, you need to keep up with the FICO credit score changes that affect your costs and fix credit report errors. That way, you’ll be in a strong position when you apply for loan preapproval or a mortgage.