Home Mortgage

Home Mortgage Rate California Section


 

Home Mortgage Rate California Navigation


|

Stress and Anxiety Guide Home Page
Tell A Friend about us
American Home Mortgage Rate Calculator |
Interest Only Home Mortgage Loans |
Pay Option Loan California Home Mortgage Refinance Interest |
Home Mortgage Refinancing Loans |
Interest Only Home Mortgage Loans |
Home Mortgage Refinancing Hawaii |
Home Mortgage Loan Rate California |
Home Mortgage Equity Lowest Refinance Loan Rates Payments |
Refinance Home Mortgage Interest Rates |
California Mobile Home Mortgage Lenders |
2nd Home Mortgage Rate Calculator |
California Home Mortgage Refinance Loan California Bad |
American Home Mortgage Servicing |
Home Mortgage Refinance And Lowest Rates |
Home Mortgage Rate Refinance |

List of home-mortgage Articles
Sitemap



Social bookmarking
You like it? Share it!
socialize it


Main Home Mortgage Rate California sponsors


 

Newest Best Sellers


 

Welcome to Home Mortgage

 

Home Mortgage Rate California 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.








 

Home Mortgage Rate California News