Credit provides a way to acquire merchandise or money with the understanding that you will repay the loan. Your history for paying your bills on time is collected by credit bureaus or credit-reporting agencies. These businesses gather, maintain, and sell information about consumers’ credit histories. They collect information about your payment habits from banks, credit unions, finance companies, or retailers.
Why is it Important ?
Generally lenders look at several things: your income, your down payment or equity, your credit history, how much money you’ve saved, and the property you plan to purchase or refinance. When studying your credit history, almost all lenders look at your credit score and your debt-to-income ratio. Lenders use credit scores, known as FICO scores or Vantage Score, as an important factor in the decision whether or not to offer credit. The scores can range from 300 to 900+ points.
Why is it Important ?
Generally lenders look at several things: your income, your down payment or equity, your credit history, how much money you’ve saved, and the property you plan to purchase or refinance. When studying your credit history, almost all lenders look at your credit score and your debt-to-income ratio. Lenders use credit scores, known as FICO scores or Vantage Score, as an important factor in the decision whether or not to offer credit. The scores can range from 300 to 900+ points.
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