Credit score. You’ve heard of it. But what is it, and why is it important for buying a house? Your credit score gives lenders an idea of how likely you are to make your payments on time. Depending on the model, credit scores typically range between 300 and 850. Higher credit scores sometimes lead to more favorable loan terms, whereas lower credit scores (below 620, for example) may have more restrictive loan terms and higher interest rates. While many factors go into determining your credit score, lenders consider it a pretty good snapshot of your financial health and history.