About Your Credit Score

Before lenders decide to give you a loan, they must know that you're willing and able to repay that loan. To figure out your ability to pay back the loan, they assess your debt-to-income ratio. To assess your willingness to repay the loan, they consult your credit score.

Fair Isaac and Company built the first FICO score to help lenders assess creditworthines. You can learn more on FICO here.

Credit scores only assess the information in your credit profile. They do not consider your income, savings, amount of down payment, or factors like sex race, national origin or marital status. These scores were invented specifically for this reason. Credit scoring was invented as a way to consider solely that which was relevant to a borrower's likelihood to pay back a loan.

Your current debt level, past late payments, length of your credit history, and other factors are considered. Your score reflects the good and the bad in your credit report. Late payments count against you, but a consistent record of paying on time will raise it.

Your report must have at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This history ensures that there is enough information in your report to calculate a score. Should you not meet the criteria for getting a credit score, you may need to establish your credit history prior to applying for a mortgage.

Bright Vision Mortgage can answer questions about credit reports and many others. Give us a call: 9043423622.