Understanding Your Credit Score

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An article that we think would be beneficial to our readers is one titled: "Understanding Your Credit Score" in which they help explain more about what a credit score is and how it might affect your credit rating when applying for a mortgage.

Credit scoring is not new, it has been showing up in some form on credit reports for a number of years, but it has been raised to an art form by a company called FairIsaac Corporation or FICO. FICO developed the software as well as many ancillary products, aimed at both lenders and consumers, that compute credit scores and offer advice on interpreting or improving them.

Credit scores are only part of the information that lenders look at when making a lending decision and a low score is not necessarily a fatal blow. Each lender has its own strategy and level of risk and each has its own cut-off point below which it will not extend credit at any price. But knowing the hows and whys of credit scoring is essential to anyone thinking about a purchase money mortgage, a refinance, or a home equity loan in the near future.

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