Your Credit Score: What it means

Before lenders make the decision to lend you money, they must know that you're willing and able to pay back that loan. To figure out your ability to pay back the loan, lenders look at your debt-to-income ratio. To assess your willingness to repay, they use your credit score.

Fair Isaac and Company formulated the original FICO score to assess creditworthines. You can learn more on FICO here.

Your credit score comes from your repayment history. They don't consider income or personal characteristics. Fair Isaac invented FICO specifically to exclude demographic factors. Credit scoring was developed to assess willingness to repay the loan while specifically excluding other personal factors.

Past delinquencies, payment behavior, debt level, length of credit history, types of credit and number of credit inquiries are all calculated into credit scores. Your score reflects the good and the bad in your credit report. Late payments will lower your credit score, but establishing or reestablishing a good track record of making payments on time will improve your score.

To get a credit score, you must have an active credit account with at least six months of payment history. This payment history ensures that there is enough information in your report to calculate an accurate score. Should you not meet the criteria for getting a score, you may need to work on your credit history before you apply for a mortgage loan.

At Executive Lending Group, LLC, we answer questions about Credit reports every day. Call us at (816) 525-8000 & (81.

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