What Your Credit Score Means for a Kentucky Mortgage Loan Approval?
What Your Credit Score Means Your credit score is essentially a standardized way for lenders to determine how risky it is to lend you money. The better the score, the lower the risk. The lower the risk, the lower your interest rate. In order to get the most favorable rate on your mortgage, you will want to have the best credit score possible. How Your Credit Score Is Determined Your credit score is formally known as a Fair Isaac Corporation Score (commonly called the FICO® score). It ranges from 300 to 850 and is calculated according to the following risk factors: Payment History (35% of score) Payment information on several types of accounts Public record and collection items Details on late or missed payments – specifically: How late they were How much was owed How recently they occurred How many there are Amounts Owed (30% of score) Amount owed on all accounts Amount owed on different types of accounts Whether you are showing a balance on certain types of a...