About Your Credit Score

Before deciding on what terms they will offer you a loan, lenders must know two things about you: whether you can repay the loan, and if you will pay it back. To understand your ability to repay, they look at your income and debt ratio. To assess your willingness to repay, they use your credit score.

Fair Isaac and Company built the first FICO score to assess creditworthines. We've written more on FICO here.

Your credit score is a direct result of your repayment history. They never consider income, savings, down payment amount, or personal factors like gender, race, national origin or marital status. These scores were invented specifically for this reason. "Profiling" was as dirty a word when these scores were invented as it is now. Credit scoring was envisioned as a way to assess willingness to pay without considering other demographic factors.

Past delinquencies, payment behavior, current debt level, length of credit history, types of credit and the number of credit inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments count against you, but a consistent record of paying on time will raise it.

For the agencies to calculate a credit score, you must have an active credit account with a payment history of six months. This history ensures that there is enough information in your report to calculate a score. Some folks don't have a long enough credit history to get a credit score. They should build up credit history before they apply.

Omni Mortgage Corp. can answer your questions about credit reporting. Give us a call: 7184417000.

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Omni Mortgage Corp.

118-18 101st Avenue
Richmond Hill, NY 11419