When applying for a home loan, you’ll hear about your credit score a lot. What is a credit score, exactly? Credit scores range from 300 to 850 and provide one way of measuring how much risk you pose for repayment. The higher your score, the lower the risk and the more likely your lender will be able to approve a loan. The three major credit reporting agencies, Experian, TransUnion and Equifax, analyze several factors to calculate your scores. For example, they’ll look at how long you’ve had credit, your payment history, how much of your available credit you’re using, the type of credit you have and whether or not there are any settlements or errors in your history. Your local loan officer can help you understand what your credit score means. You can also find more detailed information here under our Home Loan Guide.
Credit Score Explained