About Your Credit Score

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

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

Your credit score comes from your history of repayment. They never consider your income, savings, amount of down payment, or personal factors like gender, ethnicity, nationality or marital status. These scores were invented specifically for this reason. Credit scoring was developed to assess willingness to pay while specifically excluding other demographic factors.

Deliquencies, payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all calculated into credit scores. Your score comes from both the good and the bad of your credit history. Late payments will lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

For the agencies to calculate a credit score, borrowers must have an active credit account with six months of payment history. This history ensures that there is enough information in your report to calculate a score. Should you not meet the minimum criteria for getting a score, you may need to work on your credit history prior to applying for a mortgage.

U.S.A. Lending, Inc. can answer questions about credit reports and many others. Call us: 305-967-7200.