Lack of Mortgage Loan as Credit Score Risk Factor

Pensive man at laptop in home office
Dear Experian,

I was looking at my credit report and it stated, "You do not have a mortgage account in good standing." What does this mean? I do not own a house.


Dear JKL,

It simply means that you don't have a mortgage loan in your credit history.

Because a mortgage is a substantial financial commitment, a mortgage payment history is a strong indicator of lending risk. Having a mortgage with a positive payment history can be beneficial to your credit scores.

The statement doesn't mean you should go out and buy a house just to boost your scores. The biggest contributor to your credit scores is making all of your payments on time for the accounts you do have. Doing so will help you build a positive credit score over time even without a mortgage loan.

Thanks for asking.
The "Ask Experian" team