St. Louis Mortgage Rate Update; The Significance to Credit Scores

WHAT IS A CREDIT SCORE?

Simply stated, credit scores are a statistically-based tool to assess the future performance of a borrower. Scores are derived from the history of a borrower as it is reported to the credit repositories from any creditor. Credit scores are a proven indicator of the likelihood to repay a loan or credit obligation. The lower the score; the more risk from a borrower to repay a loan, on time and in full. Scores range from 400 to 850. This process was started by Fair, Isaac and Co., which is why credit scores are also called FICO scores. Scoring factors are “blind” and do not consider anything about an individual other than their creditworthiness. Continue reading “St. Louis Mortgage Rate Update; The Significance to Credit Scores