The U.S.-Iran war is coming for your credit score and mortgage application

the strait of hormuz closure is tightening consumer credit access, even though no one's credit score has dropped because of iran. lenders are quietly raising approval thresholds — a 670 fico that got a mortgage six months ago might not clear now. alexander katsman, ceo of credit booster ai, says lenders don't announce tighter standards. "they don't say 'we raised our cutoff from 660 to 700.' it just happens." he cited a client with a 690 fico, two years on the job and $8k in savings who got denied for an auto loan in april — same profile approved in november 2024. david temko of c2 financial says global instability makes lenders tighten overlays and raise reserves, even as some stay steady. inflation hit 3.2% in march, above the fed's 2% target. powell said at the fomc press conference that inflation "has moved up and is elevated" and oil pressure will likely persist. no rate cut at this week's meeting, and traders now expect no cuts for all of 2026. mariano torras of adelphi university calls it the "risk channel" — geopolitical shocks propagate through access, not just prices. "a steady closing of doors that used to be open," he said.