What is a FICO® Score?
FICO® stands for Fair Isaac & Company and is the name for the most well-known credit scoring system, used by Experian and other credit bureaus. Your FICO score is one of the most important factors lenders consider when evaluating your mortgage application.
**Understanding Your FICO Score:**
• Ranges from 300 to 850
• Higher scores indicate lower credit risk
• 740+ is considered excellent
• 670-739 is considered good
• Below 670 may require extra documentation
**What Affects Your FICO Score:**
• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• New credit (10%)
• Credit mix (10%)
**Tips to Improve Your Score:**
• Pay all bills on time
• Keep credit card balances low
• Don't close old credit accounts
• Limit new credit applications
• Review your credit report for errors
Before starting your home search, check your credit score and take steps to improve it if needed. A better score can save you thousands over the life of your mortgage.
FICO® stands for Fair Isaac & Company and is the name for the most well-known credit scoring system, used by Experian and other credit bureaus. Your FICO score is one of the most important factors lenders consider when evaluating your mortgage application.
**Understanding Your FICO Score:**
• Ranges from 300 to 850
• Higher scores indicate lower credit risk
• 740+ is considered excellent
• 670-739 is considered good
• Below 670 may require extra documentation
**What Affects Your FICO Score:**
• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• New credit (10%)
• Credit mix (10%)
**Tips to Improve Your Score:**
• Pay all bills on time
• Keep credit card balances low
• Don't close old credit accounts
• Limit new credit applications
• Review your credit report for errors
Before starting your home search, check your credit score and take steps to improve it if needed. A better score can save you thousands over the life of your mortgage.