About Your Credit Score

Before they decide on the terms of your loan, lenders want to know two things about you: your ability to pay back the loan, and if you will pay it back. To assess your ability to pay back the loan, they assess your debt-to-income ratio. To assess your willingness to repay, they use your credit score.

Fair Isaac and Company built the original FICO score to help lenders assess creditworthines. You can learn more on FICO here.

Credit scores only take into account the information contained in your credit profile. They do not take into account your income, savings, amount of down payment, or factors like sex ethnicity, national origin or marital status. Fair Isaac invented FICO specifically to exclude demographic factors like these. Credit scoring was developed as a way to take into account solely what was relevant to a borrower's likelihood to pay back a loan.

Your current debt load, past late payments, length of your credit history, and other factors are considered. Your score results from both positive and negative information in your credit report. Late payments lower your score, but consistently making future payments on time will raise your score.

Your report should 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 build a score. If you don't meet the criteria for getting a credit score, you may need to establish your credit history before you apply for a mortgage.

At Affinity Mortgage Brokers, we answer questions about Credit reports every day. Give us a call: 719-425-2226.


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