About Your Credit Score

Before deciding on what terms they will offer you a mortgage loan, lenders want to find out two things about you: whether you can pay back the loan, and if you will pay it back. To figure out your ability to repay, they look at your debt-to-income ratio. To calculate your willingness to pay back the loan, they consult your credit score.

Fair Isaac and Company built the first FICO score to help lenders assess creditworthines. You can learn more about FICO here.

Your credit score comes from your repayment history. They do not take into account your income, savings, amount of down payment, or personal factors like gender, race, nationality or marital status. These scores were invented specifically for this reason. Credit scoring was developed to assess a borrower's willingness to pay while specifically excluding other demographic factors.

Your current debt level, past late payments, length of your credit history, and other factors are considered. Your score comes from both the good and the bad of your credit history. Late payments count against you, but a consistent record of paying on time will raise it.

To get a credit score, you must have an active credit account with six months of payment history. This payment history ensures that there is sufficient information in your report to assign a score. Some folks don't have a long enough credit history to get a credit score. They should spend some time building up a credit history before they apply.

First Community Bank of Central Al. can answer questions about credit reports and many others. Call us at (334) 285-8850.

Basic Pre-Approval

Get the Best Mortgage Rate! Tell us a little about your current needs and we can use that information to match you with just the right loan.

Tell us about your loan needs.
How can we get in touch with you?
Tell us about your credit history.