DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Quick Search


view all


Any

Any

No Min.

No Max.

Central TX First Team,
REALTORS®

5504 Bunny Trl #B206
Killeen TX, 76549 
254-519-4477 
Contact Me

Contact Me





* fields are required
Back to Table of Contents

FICO® Score - a Brief Explanation

When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time. What you may not expect is that they seem to be more interested in your FICO® score.

“What’s a FICO® score?” is a common reaction.

Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 850’s.

Lenders wanted to determine if there was any relationship between these credit scores and whether borrowers made their payments on time, so they did a study. The study showed that borrowers with scores above 680 almost always made their payments on time. Borrowers with scores below 600 seemed fairly certain to develop problems.

As a result, credit scoring became a more important factor in approving mortgage loans. Credit scores also made it easier to develop artificial intelligence computer programs that could make a “yes” decision for loans that should obviously be approved. Nowadays, a computer and not a person may have actually approved your mortgage.

In short, lower credit scores require a more thorough review than higher scores. Often, mortgage lenders will not even consider a score below 600.

Some of the things that affect your FICO score are:

  • Delinquencies
  • Too many accounts opened within the last twelve months
  • Short credit history
  • Balances on revolving credit are near the maximum limits
  • Public records, such as tax liens, judgments, or bankruptcies
  • No recent credit card balances
  • Too many recent credit inquiries
  • Too few revolving accounts
  • Too many revolving accounts

FICO® actually stands for Fair Isaac and Company, which is the company used by the Experian (formerly TRW) credit bureau to calculate credit scores. Trans-Union and Equifax are two other credit bureaus who also provide credit scores.

Back to Table of Contents

Areas Serviced

Harker Heights
Killeen
Temple
Belton
Coperas Cove
Nolanville
Georgetown
Pflugerville
Leander Areas

 


 

2018 Harker Heights Chamber Ambassador
2018 Past President ~ Women’s Council of REALTORS®Central Texas
2017 President ~ Women’s Council of REALTORS®Central Texas
2016 President ~ Women’s Council of REALTORS®Central Texas
2015 Secretary ~ Women’s Council of REALTORS®Central Texas
2008 REALTOR® of the Year Fort Hood Area Association of REALTORS®
Assisting families with their real estate needs in the Central TX & Fort Hood area since 1993
 
Proud Veteran Owned Business
https://mynewcity.com/Clients/KathyBrinkley.html
 
 
 
Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu