The credit score that you will need to obtain credit will depend on a number of factors, including the type of credit that you’re seeking, and most importantly, the individual lender’s criteria.


Generally speaking, buying a car requires less scrutiny. Even with low or no established credit scores, a consumer would still be able to find a lender. However, it would likely come at a very high price in the terms of high interest rates.


A home loan, on the other hand, involves more scrutiny and stricter lending guidelines because the  value of home loans are larger and the length of the loan terms are much longer. A lender will want to ensure that you’re financially capable of taking on such a huge financial responsibility. One of the determining factors is your credit scores as they give the lender a general idea of how you’ve managed your financial obligations. But, aside from credit scores, most lenders have their own internal calculations for determining how much they feel you can afford to purchase. There are also other factors that may be considered, such as income and debt-to-income ratio. You can contact your prospective lender to determine their lending criteria.