About Your Credit Score
Before lenders make the decision to give you a loan, they need to know if you are willing and able to repay that mortgage loan. To understand whether you can pay back the loan, they assess your income and debt ratio. To assess your willingness to repay, they use your credit score.
Fair Isaac and Company developed the original FICO score to assess creditworthines. You can learn more about FICO here.
Credit scores only assess the information in your credit profile. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was developed to assess willingness to repay the loan without considering other personal factors.
Your current debt load, past late payments, length of your credit history, and a few other factors are considered. Your score reflects both the good and the bad in your credit report. Late payments lower your credit 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 six months of payment history. This payment history ensures that there is sufficient information in your credit to calculate an accurate score. Some borrowers don't have a long enough credit history to get a credit score. They may need to build up a credit history before they apply.
PREMIERE MORTGAGE SERVICES INC. can answer questions about credit reports and many others. Give us a call: 978-422-2311.
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