Home Mortgage

Best Home Mortgage Loan Section


 

Best Home Mortgage Loan Navigation


|

Stress and Anxiety Guide Home Page
Tell A Friend about us
Current Home Mortgage Interest Rates Iowa |
Manufactured Home Mortgage |
Manufactured Home Mortgage Lender |
Home Mortgage Refinancing Loan California |
Colorado Home Mortgage Refinancing Loan |
New Jersey Home Mortgage Calculator |
Home Mortgage Interest |
Las Vegas Home Mortgage Loan California Refinance |
Home Mortgage Online |
St Cloud Home Mortgage |
Home Mortgage Rates |
Refinancing Home Mortgage Calculator |
Cost Home Mortgage No Refinance |
Home Mortgage Rate Refinance California |
Lender Home Mortgage Loan Rate California Credit |

List of home-mortgage Articles
Sitemap



Social bookmarking
You like it? Share it!
socialize it


Main Best Home Mortgage Loan sponsors


 

Newest Best Sellers


 

Welcome to Home Mortgage

 

Best Home Mortgage Loan Article

Thumbnail example. For a permanent link to this article, or to bookmark it for further reading, click here.


You may also listen to this article by using the following controls.

What is Credit Scoring?

from: John Mussi




Have you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit.

How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans.

Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report.

Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points (a credit score) helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.

Credit scoring is used because it is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals. Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.

A significant factor in determining your credit score is your payment history. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.

You may freely reprint this article provided the author's biography remains intact:

About the Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.








 

Best Home Mortgage Loan News