About Your Credit Score

Before lenders decide to give you a loan, they have to know if you're willing and able to repay that loan. To understand your ability to repay, they look at your income and debt ratio. To assess how willing you are to repay, they use your credit score.

The most widely used credit scores are FICO scores, which Fair Isaac & Company, a financial analytics agency, developed. The FICO score ranges from 350 (high risk) to 850 (low risk). You can learn more on FICO here.

Credit scores only consider the info contained in your credit profile. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was developed as a way to take into account only what was relevant to a borrower's willingness to pay back the lender.

Deliquencies, payment behavior, debt level, length of credit history, types of credit and number of credit inquiries are all calculated into credit scores. Your score considers positive and negative items in your credit report. Late payments lower your score, but consistently making future payments on time will raise your score.

Your credit 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 sufficient information in your credit to generate a score. Should you not meet the criteria for getting a score, you may need to work on your credit history prior to applying for a mortgage.

PREMIERE MORTGAGE SERVICES, INC. can answer your questions about credit reporting. Call us at 978-422-2311.

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