What is a credit score?

A credit score is a numerical rating based on relevant factors measuring a borrower's willingness to repay a loan. Your credit score is calculated from the information in your credit profile which is a record of your credit activities over time. This score predicts your credit performance. The higher the score, the better credit risk you are.

The FICO score is the most popular credit scoring system developed. You may obtain your FICO score from any of the three main credit reporting agencies (it is advisable to monitor all three to ensure current and accurate data ):

• Equifax (800) 685-1111

• Experian (888) EXPERIAN (397-3742)

• Trans Union (800) 916-8800

or through the website: www.myFICO.com .

Since the credit score is derived from a credit history, there must be a minimum history in order to get an accurate score. Before a credit report can be obtained, you must have a minimum of one account that has been open for at least six months, and current activity within the most recent six months.

You would have to develop a credit history to be eligible to apply for a mortgage. If your score is too low, there are ways to raise your credit score . However, it is almost impossible to improve it in a short time period. It is important to employ credit habits that will ensure a high credit score at the time you most need it.