Understanding Mortgage Credit Scores
Your credit report is separate from your credit score, though the score is developed from the report. In addition to viewing credit reports from the three major reporting bureaus, you also should obtain your FICO score. Your score is like a report card. Fair Isaac & Co. (the FICO score keeper) assigns you a number based on the information in your credit report. Since there are three credit-reporting bureaus, you have three FICO scores. Here are the scoring factors:
Payment history — Have you paid your bills on time?
Amounts owed — What is your overall debt?
Length of credit history — How long have you been borrowing money? Lenders like to see a long credit history.
New credit — Have you applied for new credit?
Types of credit used — Lenders like to see all kinds of credit types: bank cards, car loans, student loans, and more.