A credit score is a three-digit number. It represents your credit history and tells the lender the likelihood of you repaying your debt. It includes factors like how long your credit has been open, how much credit you have, and how much of it you use.
Whenever you apply for credit, such as when applying for a home loan, lenders and banks will use this number to decide if they will approve you for a loan. And if you get approved, this number will influence what the terms will be.
Your credit score is generated by the three main credit bureaus (Equifax, Experian, and TransUnion®) using a credit-scoring model. The most commonly used credit-scoring model is one developed by FICO®. It's based on several factors, like credit usage and available credit, but never on personal information such as race, gender, or ethnicity. Credit scores typically range from 300-850.
A "good" score varies slightly from lender to lender, but one thing remains the same --the higher your credit score, the better. A higher credit score tells lenders that you are low risk for defaulting on your loan, making it more likely that you get offered more credit and better loan terms.
Most lenders consider credit scores over 670 to be good. A credit score above 740 is very good, and any score of 800+ is exceptional.
By providing your phone number and/or email address you agree to receive updates, offers, and other promotional and marketing communications from First Equity Home Loan, Inc. This may include calls or text messages sent to your mobile device via an automated telephone dialing system if you elect to provide your cell phone number to us as a point of contact. Please note: Standard data and messaging rates may apply. By clicking "Submit" you agree to these contracts as well as to our Terms of Service and Privacy Policy