Credit Scores

Before lenders make the decision to give you a loan, they want to know if you're willing and able to repay that mortgage. To understand whether you can repay, they look at your income and debt ratio. To assess how willing you are to repay, they use your credit score.

Fair Isaac and Company built the first FICO score to help lenders assess creditworthines. You can find out more about FICO here.

Your credit score comes from your repayment history. They don't consider your income, savings, down payment amount, or personal factors like sex ethnicity, nationality or marital status. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to assess a borrower's willingness to repay the loan without considering other irrelevant factors.

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

Your report should contain 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 generate an accurate score. Some people don't have a long enough credit history to get a credit score. They should build up credit history before they apply.

At Executive Lending Group, LLC, we answer questions about Credit reports every day. Call us at 8165258000.