Compass Mortgage - Credit Reports: How Do You Rate?

Credit Scores – How Do You Rate?

Fun Fact: Credit scores have been available to New Hampshire home lenders since the 1950s. They did not become widely used until the 1980s, however.

What is a Credit Score?

A credit score is your credit report, summarized by a number that represents your creditworthiness (sometimes referred to as your FICO score). In simple terms, it is a measure of the likelihood that you will pay back the money you borrow.

How is my score determined?

Your credit score is determined by a mathematical formula or model that places numerical weights on different factors in your credit history including:

Late payments – how many and how late
How long a time period you’ve had established credit
The amount of credit used (your current balance)
The amount of credit available (your high credit)
Residence history (how long you have lived there)
Employment history (how long have you been at your job)
Collection and charge-offs (outstanding bills you never paid)
Bankruptcies

What is A Good Score?

There are many different models but for a New Hampshire mortgage, most credit scores we see range from a low of 500 to a high of 800.

A score in the 500s is not favorable.
A score in the 600s is the most common and usually acceptable.
A score in the 700s is clearly a wonderful thing

FYI: All three repositories offer credit scores, but each of them call it something different:

Equifax calls it the “Beacon” score.
TransUnion calls it the “Empirica” score.
Experian calls it the “FICO” score.

If you have questions about your credit or getting pre-approved for a New Hampshire home, call Charley Farley at (603) 471-9300 e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

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