About Your Credit Score

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

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

Credit scores only assess the information in your credit reports. They don't consider income, savings, amount of down payment, or factors like gender, race, nationality or marital status. Fair Isaac invented FICO specifically to exclude demographic factors. Credit scoring was invented as a way to consider solely that which was relevant to a borrower's likelihood to pay back a loan.

Your current debt level, past late payments, length of your credit history, and a few other factors are considered. Your score considers positive and negative items in your credit report. Late payments count against you, but a record of paying on time will raise it.

To get a credit score, you must have an active credit account with at least six months of payment history. This history ensures that there is enough information in your credit to generate 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.

Community Trust Lending Team at Norcom Mortgage-NMLS ID#71655 can answer questions about credit reports and many others. Call us: (203) 526-9345.