Your Credit Score Isn’t the Whole Picture — Here’s What Lenders Really Look At

Your credit score matters — but it's not the whole story. Though a high score can be a ticket to opportunities, many are surprised to discover that lenders consider far more than that three-digit number when deciding to grant a loan, credit card, or mortgage.

So what are they actually looking for? Let's break it down.

1. Your Debt-to-Income Ratio (DTI)

Even if you're in good standing with your credit, lenders also want to see how much of your income every month is obligated elsewhere.

Why it matters: If your DTI is excessive, lenders may believe you won't be able to manage an additional payment — even with good credit.

Tip: Keep DTI below 36% to improve chances for approval.

2. Your Employment and Income Stability

A 750 credit score will not be very useful if a lender cannot verify a steady source of income.

Why it matters: They need to see consistent employment and income to feel secure that you can pay them back.

Tip: Be prepared to provide pay stubs, tax returns, or other documentation of earnings.

3. Your Credit Utilization

This is the amount of your available credit that you are using.

Why it matters: Maxed-out cards, even if you have a good score, can make you appear financially strained.

Tip: Make sure your utilization is below 30% — preferably nearer to 10%.

4. Your Credit Mix

It's beneficial for lenders that you're able to manage various credit — not only one credit card.

Why it matters: A balanced mix (credit cards, auto loans, student loans, etc.) indicates experience with multiple accounts.

Tip: Don’t take on new debt just for the mix, but know that it helps.

5. Your Payment History

This one does affect your score — but lenders will often look deeper than just the number.

Why it matters: Even one recent missed payment can raise red flags.

Tip: Set up auto-pay or reminders to keep your payment history spotless.

6. Your Recent Applications for Credit

Lenders are able to view how frequently you've requested new credit within a brief time frame.

Why it matters: Excessive recent inquiries can give the impression that you're in need of money.

Tip: Apply for credit only when you actually need it.

Final Thoughts

Your credit score gets the door open — but there's more lenders check. If you're likely to be applying for credit in the near future, step back and take a view of your complete financial situation.

Guard My Credit keeps you on top of your credit report, helps you safeguard your identity, and provides you with the means to look good on paper — and in person.

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