The FICO credit score condenses your entire history as a borrower into a tidy three-digit number. That number ranges from 300-850 and is tabulated separately by each of the three credit reporting agencies.
FICO doesn’t reveal exactly how it formulates a credit score. But the company does provide a more broad-based look at how it all comes together.
So, let’s take a look at the five big factors that make up your FICO score:
It's important to understand there isn’t just one type of FICO score. There are dozens and dozens of different scoring formulas depending on the type of financing you’re seeking.
A mortgage lender, a car dealer and a credit card company could pull your credit and each come up with three different versions of your credit score.
Mortgage credit scores often look different from other types of credit scores, including the "educational" or generic scores consumers can receive from monitoring services like Credit Karma and other tools and apps. The scores that mortgage lenders see are tailored for their financing niche.
That means what you see as your credit score and what lenders see can be two different things.
Mortgage lenders will request your credit score from each of the three major credit bureaus. If the scores are different, and they very often are, lenders will typically use the median, or middle, score as your official credit score.
Talk with a Veterans United loan specialist at 855-259-6455 to get a look at your mortgage credit scores and what might be possible.