Credit Scores

Before lenders make the decision to lend you money, they want to know that you're willing and able to pay back that loan. To understand your ability to pay back the loan, they look at your income and debt ratio. To calculate your willingness to pay back the loan, they look at your credit score.

Fair Isaac and Company calculated the first FICO score to help lenders assess creditworthines. For details on FICO, read more here.

Credit scores only assess the information in your credit profile. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to take into account solely that which was relevant to a borrower's willingness to pay back the lender.

Your current debt load, past late payments, length of your credit history, and a few other factors are considered. Your score reflects the good and the bad of your credit report. Late payments will lower your credit score, but consistently making future payments on time will raise your score.

Your report should 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 history ensures that there is sufficient information in your report to assign a score. Some people don't have a long enough credit history to get a credit score. They may need to build up credit history before they apply for a loan.

Metro Mortgage can answer questions about credit reports and many others. Call us: 866-300-1550.