About Your Credit Score

Before lenders decide to give you a loan, they want to know if you are willing and able to pay back that mortgage loan. To assess whether you can repay, they look at your income and debt ratio. To assess your willingness to repay the mortgage loan, they look at your credit score.

Fair Isaac and Company formulated the first FICO score to assess creditworthines. For details on FICO, read more here.

Credit scores only consider the info in your credit profile. They don't consider income or personal characteristics. Fair Isaac invented FICO specifically to exclude demographic factors. "Profiling" was as bad a word when FICO scores were invented as it is in the present day. Credit scoring was envisioned as a way to assess willingness to pay while specifically excluding other personal factors.

Your current debt level, past late payments, length of your credit history, and a few other factors are considered. Your score is calculated wtih positive and negative items in your credit report. Late payments lower your credit score, but establishing or reestablishing a good track record of making payments on time will improve your score.

Your report must have 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 payment history ensures that there is enough information in your report to assign 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 for a loan.

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

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