YOUR CREDIT SCORE

In the United States, a credit score is a number that is based on a statistical analysis of a person's credit report, and is used to represent the creditworthiness of that person—the likelihood that the person will pay his or her debts.  A credit score is primarily based on credit report information, typically from the three major credit bureaus (Experian, TransUnion, and Equifax)

A review of your credit report is part of the pre-qualifying process with a lender for a mortgage.  Using credit scores, lenders determine who qualifies for a loan, at what interest rate, and to what credit limits. The most widely known score in the United States is FICO.   FICO is the acronym for Fair Isaac Corporation, a publicly-traded corporation (under the symbol "FIC") that created the best-known and most widely used credit score model in the United States. The FICO score is calculated statistically, with information from a consumer's credit files.

If you would like more information from me about how to read and understand your credit report, please ask me for my Home Buyer’s Guide to Understanding Your Credit.