What is a credit score and how will it affect my application?
A credit score is one piece of information used to evaluate your application. It is based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information, converted into a number, that helps a lender to determine the likelihood that you will repay the loan on schedule. Credit bureaus, not lenders, calculate the score, which generally range between 300 and 900. A higher score generally represents a greater likelihood that you will repay the loan on time. Among the factors that affect your credit score are your payment history, outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of recent inquiries about your credit history. Using credit scores to evaluate your credit history allows lenders to quickly and objectively evaluate your credit history when reviewing your applicat