What is a
credit score?
Credit scores are numeric values that rank
individuals according to their credit history
and provide lenders with another tool to keep
their evaluation of your loan application as
accurate, objective and consistent as possible.
Your credit score is primarily based on:
- your past payment history
- the amount of credit you have
outstanding
- the amount of credit you have available
Credit scores are just one of many factors
considered in the underwriting process. When
a credit score is low, lenders try to find other
factors that could satisfy the underwriting
criteria. The decision to approve or deny a loan
is always based on sound, flexible, underwriting
guidelines.
"What is a FICO score?"
A FICO Score is a type of credit score
developed by Fair Issac & Company by observing
millions of consumers' credit bureau records.
All of the consumer data—positive and negative—was included to develop the system that ranges
from approximately 350 to 900. Historically,
people with higher scores generally are more
likely to make his or her loan payment.
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