How Your Credit Score is Calculated

Your Credit Scores Affect Your Home Buying Ability


Home buyers who are seeking a loan find out early-on that their credit scores play an important part in the home buying process and in determining the interest rate that a lender offers.

It's a good idea to learn as much as you can about your credit reports and credit scores before you apply for a loan. If your credit reports include mistakes, you'll need some time to get them corrected. Some negative information can be removed-with the help of your creditors-but that process also takes time.

What is a credit score?

A credit score is a number that lenders use to estimate risk. Experience has shown them that borrowers with higher credit scores are less likely to default on a loan.

How are credit scores calculated?

Credit scores are generated by plugging the data from your credit report into software that analyzes it and cranks out a number.

The three major credit reporting agencies don't necessarily use the same scoring software, so don't be surprised when you discover that the scores they generate for you are different.

Why credit scores sometimes called FICO scores?

The software used to calculate a vast number of reports was created by Fair Isaac Corporation (FICO).

Which parts of a credit history are most important?  Click the link to see the breakdown of the approximate weight each aspect of your credit report brings to the credit score calculation http://www.cribbinrealty.com/reports/buyer/how-your-credit-score-is-calculated.html

If you are starting your search to buy now or in the future, why not search like a realtor. Sign up for listing book, a free service I provide with no strings attached. Here is the link: http://a107021.listingbook.com/.


If you would like information on Buying, Selling, For Sale By Owners, 1st Time Buying, click on the appropriate link on my website http://www.cribbinrealty.com/.

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What did the house down the street sell for? Want to know call me or visit my website at http://www.cribbinrealty.com/

If you would like to know what your homes current value is check out Market Snapshot on my website http://www.cribbinrealty.com/market-snapshot-2.html or just call me at 636-294-6061.

For any of your Real Estate Questions or Needs call Me at 636-294-6061 or Mike@cribbinrealty.com Remember “Cribbin Realty” Where Performance Outsells Promises.

Mike Cribbin