Credit Scores, Credit Coaching & the Truth About Credit Karma – What Every Homebuyer Needs to Know
By Kyle Guldenpfennig – The Lofty Lender | #TallMoneyMan
Buying a home is one of the most important financial decisions you'll make—and your credit score plays a massive role in determining what kind of mortgage you qualify for. In a recent episode of The Lofty Lender podcast, I sat down with mortgage expert Charlie Chedester to talk about credit scores, credit repair (or should we say coaching), and how to prepare your credit for homeownership.
🎙️ Missed the episode? Search for The Lofty Lender with #TallMoneyMan wherever you download podcasts—Apple, Spotify, Google Podcasts & more.
Credit Repair vs. Credit Coaching: What’s the Difference?
First things first—Charlie and I both agree: "credit repair" can sound like a dirty word. Instead, we prefer credit coaching, because improving your credit isn't about gimmicks—it's about education, strategy, and habits.
From those with low scores to borrowers sitting pretty in the 740+ range, nearly everyone can benefit from smart credit coaching. Sometimes, you're just a few points away from unlocking better mortgage rates and bigger savings.
The 5 Core Factors That Make Up Your Credit Score
We broke it down into five key components that drive your FICO score, which is the model mortgage lenders rely on:
Credit History – How long your accounts have been open.
Payment History – On-time payments are non-negotiable.
Credit Mix – A blend of credit cards, student loans, car loans, etc.
Capacity – Your available credit and total limits.
Utilization – How much of your available credit you're actually using (hint: keep it under 30% for best results).
Want to boost your score? One of the best ways is to keep credit card balances below 30%, or even better, under 10%, and let a balance report before paying it off. Timing matters more than most people realize!
Debunking Credit Karma and the Myth of Free Credit Scores
We hear this one all the time:
“But Kyle, my Credit Karma score says I’m over 700!”
Unfortunately, that number often doesn’t match what lenders see. Credit Karma and other free credit monitoring apps use a different model (VantageScore), while mortgage lenders use FICO scores, which look at 7+ years of data—not just the last 12 months.
Apps like Credit Karma are helpful for tracking trends, but don’t take the score as gospel. If you're serious about buying a home, we’ll run a soft credit pull and coach you based on the actual models used for mortgage underwriting.
Common Credit Mistakes That Can Tank Your Score
Even well-intentioned moves can hurt your credit if done at the wrong time:
Closing old accounts with long histories can erase valuable positive data.
Paying off all debt right before applying for a mortgage can make you appear riskier (yes, it’s true).
Not using credit at all can leave you with no credit score, which makes mortgage approval much tougher.
If you’re unsure, reach out to us before making any major changes—we can guide you through the right steps.
Actionable Steps to Get Mortgage-Ready
Whether you're 6 months out from buying or just getting started, now is the time to take control of your credit. Here's what you can do:
✅ Reach out for a soft pull – Let’s see where you stand with no impact to your score.
✅ Ask us about credit building strategies – Like becoming an authorized user, opening the right type of credit card, or making small habit tweaks.
✅ Don’t rely solely on Credit Karma – Get advice based on real mortgage scoring models.
✅ Need deep credit help? We’ll connect you with professional credit repair resources for more complex cases.
Final Thoughts
Improving your credit score is one of the best ways to save money on your mortgage and qualify for better loan options. Whether you're a first-time buyer, a seasoned investor, or just curious, having the right game plan can make all the difference.
🎧 Want more tips, tricks, and real stories from the world of homebuying?
Search for The Lofty Lender with #TallMoneyMan wherever fine podcasts are downloaded.
We're here to help—because buying a home shouldn't feel impossible. Let’s make the dream work for you.
Kyle Guldenpfennig
Mortgage Loan Officer | Podcast Host of The Lofty Lender
📱 Follow @TallMoneyMan on social media for more homebuying insights.
