About Your Credit Score

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Before deciding on what terms they will offer you a loan, lenders must discover two things about you: whether you can pay back the loan, and if you will pay it back. To figure out your ability to repay, they assess your debt-to-income ratio. To assess your willingness to repay, they use your credit score.

The most widely used credit scores are called FICO scores, which were developed by Fair Isaac & Company, Inc. Your FICO score ranges from 350 (very high risk) to 850 (low risk). For details on FICO, read more here.

Your credit score comes from your repayment history. They never consider income, savings, down payment amount, or factors like sex ethnicity, national origin or marital status. These scores were invented specifically for this reason. Credit scoring was developed to assess a borrower's willingness to repay the loan without considering any other personal factors.

Deliquencies, payment behavior, current debt level, length of credit history, types of credit and number of credit inquiries are all considered in credit scoring. Your score comes from both the good and the bad of your credit report. Late payments count against your score, but a record of paying on time will raise it.

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

At Howard Financial, we answer questions about Credit reports every day. Give us a call: (610) 889-7467.
n't consider income or personal characteristics. Fair Isaac invented FICO specifically to exclude demographic factors like these. "Profiling" was as dirty a word when FICO scores were first invented as it is now. Credit scoring was invented as a way to consider solely what was relevant to a borrower's willingness to repay the lender.

Deliquencies, derogatory payment behavior, debt level, length of credit history, types of credit and number of credit inquiries are all calculated into credit scoring. Your score results from both positive and negative information in your credit report. Late payments count against your score, but a record of paying on time will improve it.

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

Howard Financial can answer your questions about credit reporting. Call us: (610) 889-7467.

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