Credit Scoring

Before lenders make the decision to give you a loan, they need to know that you are willing and able to pay back that mortgage. To figure out your ability to repay, they look at your debt-to-income ratio. In order to assess your willingness to repay the loan, they look at your credit score.

Fair Isaac and Company built the first FICO score to assess creditworthines. For details on FICO, read more here.

Credit scores only take into account the information contained in your credit profile. They don't consider income or personal characteristics. These scores were invented specifically for this reason. "Profiling" was as dirty a word when FICO scores were invented as it is today. Credit scoring was envisioned as a way to assess a borrower's willingness to repay the loan without considering any other irrelevant factors.

Your current debt level, past late payments, length of your credit history, and a few other factors are considered. Your score results from positive and negative items in your credit report. Late payments count against your score, but a record of paying on time will improve it.

To get a credit score, you must have an active credit account with six months of payment history. This history ensures that there is enough information in your report to assign an accurate score. Should you not meet the minimum criteria for getting a score, you might need to work on your credit history before you apply for a mortgage loan.

Coastal Mortgage Corp. can answer your questions about credit reporting. Give us a call at 504-866-5626.

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.