Credit Scores

Before lenders decide to lend you money, they have to know if you are willing and able to pay back that loan. To understand whether you can repay, they assess your income and debt ratio. In order to assess your willingness to pay back the loan, they look at your credit score.

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

Credit scores only assess the information in your credit reports. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to assess willingness to repay the loan without considering other irrelevant factors.

Your current debt load, past late payments, length of your credit history, and other factors are considered. Your score comes from both the good and the bad in your credit report. Late payments lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

To get a credit score, you must have an active credit account with at least six months of payment history. This history ensures that there is enough information in your credit to generate an accurate score. If you don't meet the minimum criteria for getting a credit score, you may need to work on your credit history prior to applying for a mortgage loan.

At Price Mortgage Group LLC, we answer questions about Credit reports every day. Call us: 405-513-7700.