A credit score is a three-digit number that determines your creditworthiness and measures how likely you are to repay a loan on time. Your credit score is based upon your history of repaying debt, and factors heavily into lenders deciding if you are responsible about paying your bills on time. The higher your credit score is, the better the chances are that you will be approved for a loan.

There are five major elements that make up your credit score:

• Payment history


• Amounts owed


• Length of credit history


• New credit


• Types of credit used

Who determines credit scores?  In the United States, there are three major credit bureaus: Equifax, Experian and TransUnion. These credit-rating agencies collect positive and negative financial information about your credit accounts to determine your credit score.

Why is a credit score important?  Your credit score can be one of your most valuable assets because it plays such a large role in your financial future. Your score can also affect the interest you pay on your loans. The higher your score is, the less interest you will likely have to pay.

As a Mortgage Planner, I will review your credit report with you to determine if there are errors that may need to be corrected and discuss what options may be available for you for home loans. Call me today to set up an appointment, and I can pull a copy of your credit report for our meeting.