About Your Credit Score

Before lenders make the decision to give you a loan, they have to know if you are willing and able to pay back that loan. To assess your ability to repay, they look at your income and debt ratio. To assess your willingness to repay the loan, they look at your credit score.

Fair Isaac and Company built the first FICO score to help lenders assess creditworthines. You can find out more about FICO here.

Credit scores only consider the info contained in your credit reports. They don't consider income or personal characteristics. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to assess a borrower's willingness to pay without considering any other personal factors.

Your current debt load, past late payments, length of your credit history, and a few other factors are considered. Your score comes from the good and the bad in your credit report. Late payments will lower your credit score, but consistently making future payments on time will improve your score.

To get a credit score, you must have an active credit account with a payment history of at least six months. This history ensures that there is enough information in your report to generate an accurate score. Some borrowers don't have a long enough credit history to get a credit score. They may need to build up credit history before they apply.

Tenby J. Dahman The Dahman Team can answer your questions about credit reporting. Give us a call at 3038627760.