Why Credit is the Key to Ownership

For many aspiring homeowners—especially in underserved communities—credit can feel like a mystery, a gatekeeper, or even an immovable wall. But it doesn’t have to be. When you understand how credit works and how to improve it, it becomes a powerful tool, not an obstacle. And if your dream is to own a home, credit is often the very first step.

What Is Credit, Really?

Credit is essentially a record of how you manage money you borrow. Lenders use this record to decide whether to loan you money, how much, and at what interest rate. It’s captured in your credit report and summarized in a credit score, typically ranging from 300 to 850.

A higher score tells lenders you’re a low-risk borrower—someone they can trust to repay a loan. A lower score can lead to higher interest rates or even loan denials.