Credit Scoring

Credit scores, also known as FICOs, are numerical values based on the analysis of a person’s credit history. The values represent the creditworthiness of the person, based on the information provided from the country’s three credit bureaus. These numbers are used to evaluate the risk of late payments or high balances.

A credit score will decrease if the borrower has a history of late payments or high balances. Bankruptcy also severely affects the score. Fraud, such as identity theft, can also decrease a person’s score.

Depending on one’s credit score, lenders can evaluate who qualifies for a loan, with what interest rate and with what kind of credit limits. A low credit score will often prevent individuals from obtaining a loan, credit card approvals or even affect your job application.

There are several ways to improve your credit score, including paying down balances, closing accounts, and analyzing one’s credit report and disputing any incorrect charges. To get a free copy of your credit report go to and choose which credit bureau’s information you want to review.  You can obtain free copies every 12 months. Regular checks ensures that the information about you stays accurate with all three of the credit reporting companies:




For help reviewing your credit reports and/or information on how you can increase your score, contact your loan officer.