Credit Scoring

Your Credit Score - What it means to you...and us.

Understanding your credit is the first step to home ownership. The quantity and quality of your credit history plays into several aspects of getting a mortgage loan. Credit scoring is a statistical method used by mortgage lenders to determine if you qualify for a loan, what interest rate to use, and how much money to lend you.

There are several scoring systems available: Equifax Beacon 5.0, TransUnion FICO Classic 98 and Experian Fair Isaac Model II. Scores range from 300 to 850. The higher the score, the better the risk.

Your credit score is based on the following data: Past credit history, Balances owed, Length of Credit History, New credit, and Type of Credit used.

The following data DOES NOT affect your credit score: Race, age, gender, religion, marital status, income, nationality, address, employment position or title, length of employment or interest rates of existing loans.

Improve Your Credit Score

The best ways to improve your credit score include:

• Make Payments On Time
• Pay down revolving credit card debt
• Spread high balances across open accounts
• Avoid excessive inquiries
• Review all accounts for accuracy

Free Credit Report

Your Bay Lending Loan Officer will be happy to give you a free credit report, and explain options specific to your situation. There is no-cost and no-obligation.