About Your Credit Score

Before deciding on what terms they will offer you a loan (which they base on their risk), lenders must know two things about you: your ability to pay back the loan, and how committed you are to repay the loan. To figure out your ability to repay, lenders look at your debt-to-income ratio. To assess your willingness to pay back the mortgage loan, they consult your credit score.

Fair Isaac and Company formulated the original FICO score to assess creditworthines. You can find out more on FICO here.

Your credit score is a result of your history of repayment. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to assess a borrower's willingness to pay without considering other personal factors.

Past delinquencies, derogatory payment behavior, debt level, length of credit history, types of credit and number of inquiries are all considered in credit scoring. Your score results from both positive and negative items in 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 six months of payment history. This history ensures that there is sufficient information in your credit to assign 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.

Executive Lending Group can answer questions about credit reports and many others. Call us: (405) 615-8543.

Basic Pre-Approval

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