When you’re applying for a mortgage with MSUFCU, one key factor we look at is your FICO credit score. But what exactly is a FICO score, and why does it matter?
What is a FICO Credit Score?
Your FICO score is a three-digit number that summarizes your creditworthiness based on your credit history. It ranges from 300 to 850 and is calculated using factors like your payment history, amounts owed, length of credit history, new credit, and types of credit used.
Why Does It Matter for Your Mortgage?
At MSUFCU, we use your FICO score to understand how likely you are to repay your loan on time. A higher score generally means you’re seen as less risky, which can lead to better mortgage rates and loan terms. Conversely, a lower score might make it harder to qualify or result in higher interest rates.
How Can You Improve Your Score?
Paying bills on time, reducing outstanding debts, and avoiding opening too many new credit accounts at once are great ways to boost your credit score. Checking your credit report regularly can also help you spot and correct any errors.
Ready to Buy?
Understanding your FICO score is an important first step toward securing a mortgage that fits your needs. Our home loan specialists at MSUFCU are here to guide you through the process and help you explore options based on your credit profile. Schedule an appointment with us today!
Learn more about how credit impacts your mortgage here.
