Credit Scoring

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

Fair Isaac and Company built the original FICO score to help lenders assess creditworthines. You can find out more about FICO here.

Your credit score is a result of your history of repayment. They don't consider income or personal characteristics. Fair Isaac invented FICO specifically to exclude demographic factors. Credit scoring was developed to assess a borrower's willingness to pay while specifically excluding any other demographic factors.

Your current debt load, past late payments, length of your credit history, and a few other factors are considered. Your score results from both positive and negative information in your credit report. Late payments count against your score, but a record of paying on time will improve it.

For the agencies to calculate a credit score, you must have an active credit account with a payment history of six months. This payment history ensures that there is sufficient information in your credit to calculate an accurate score. Some borrowers don't have a long enough credit history to get a credit score. They may need to spend a little time building a credit history before they apply.

U.S.A. Lending, Inc. can answer your questions about credit reporting. Call us at 305-967-7200.