What is a Credit Score?
A credit score is a number that reflects the likelihood of someone making repayments. Credit scores help the lender assess each application fairly using the same criteria a high score means they are more likely to offer you credit. Each credit reference agency provides their own version of a credit score so the credit score used to assess your application will depend on which credit reference agency the lender is using.
Credit scores are numeric representations of your credit profile. The higher the score the better credit risk you are. Presumably, you can be denied a mortgage loan if your score is too low. These scores have been around for several years but started to be used in the mortgage lending business in 1995.
A credit score is a number, in the range of 300 to 850, derived by a mathematical formula that is used by lenders as one factor in determining an applicant’s creditworthiness. Credit scores are based on information in your credit files with the major credit reporting agencies. A FICO score is a type of credit score produced by a proprietary system owned by the Fair Isaac Corporation. The FICO score is only one of many factors that lenders consider in evaluating your loan application.
