About Your Credit Score
Before lenders decide to give you a loan, they must know that you are willing and able to repay that loan. To assess your ability to repay, lenders look at your debt-to-income ratio. To assess how willing you are to repay, they use your credit score.
Fair Isaac and Company calculated the original FICO score to assess creditworthines. We've written a lot more about FICO here.
Your credit score comes from your repayment history. They don't consider income or personal characteristics. These scores were invented specifically for this reason. "Profiling" was as dirty a word when FICO scores were invented as it is now. Credit scoring was developed to assess a borrower's willingness to pay without considering other personal factors.
Your current debt load, past late payments, length of your credit history, and other factors are considered. Your score results from positive and negative items in your credit report. Late payments lower your credit score, but consistently making future payments on time will improve your score.
Your report must 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 payment history ensures that there is enough information in your credit to build a score. If you don't meet the criteria for getting a credit score, you may need to work on a credit history prior to applying for a mortgage.
1st Credential Mortgage Inc can answer questions about credit reports and many others. Give us a call: (281) 778-0805.