About Your Credit Score

Before lenders decide to give you a loan, they must know if you're willing and able to pay back that loan. To assess your ability to repay, they look at your debt-to-income ratio. In order to calculate your willingness to repay the mortgage loan, they consult your credit score.

The most commonly used credit scores are FICO scores, which were developed by Fair Isaac & Company, Inc. The FICO score ranges from 350 (high risk) to 850 (low risk). You can learn more on FICO here.

Your credit score is a direct result of your history of repayment. They don't consider income or personal characteristics. Fair Isaac invented FICO specifically to exclude demographic factors like these. Credit scoring was developed to assess a borrower's willingness to pay without considering other irrelevant factors.

Your current debt level, past late payments, length of your credit history, and other factors are considered. Your score comes from the good and the bad of your credit report. Late payments lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

Your credit report should contain at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This history ensures that there is enough information in your report to build a score. Some people don't have a long enough credit history to get a credit score. They may need to spend a little time building a credit history before they apply.

At First Community Bank of Central Al., we answer questions about Credit reports every day. Call us: (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.