A credit score is a number that is derived from lots and lots of statistical analysis gathered on your credit file. This number is based on different things, like how much you’ve borrowed, how much you’ve used versus not used, when you opened accounts, and most importantly, how you’ve paid your obligations.
If you haven’t established “traditional credit”, take the time now to get started. Banks want to see that your credit report includes a good payment history on at least four items for at least 24 months. Some loan programs require a minimum credit score. Be sure to ask your mortgage loan originator.
Do some digging into your financial past and see what kind of numbers you discover. The nationwide credit agencies (Equifax, Experian and TransUnion) are required by law to provide free credit histories. Once every 12 months, you can order your report at www.annualcreditreport.com.
KEEP YOURSELF CREDIT WORTHY
Housing and Credit Counseling Inc. of Kansas, 1-800-383-0217, www.hud.gov