Definition: The FICO credit score, or Fair Credit Score, is an important factor in determining a borrower's ability to obtain a mortgage loan from banks, credit unions, and other lenders. The FICO credit score is calculated based on several factors such as payment history, debt-to-income ratio,信用历史,信用评分等。 Here are some key points about the FICO credit score: 1.

Credit History

: This is one of the most significant factors in determining a borrower's ability to obtain a mortgage loan. Credit scores can range from 300 to 850, with higher scores indicating greater risk and hence, may result in higher interest rates. 2.

Payment History

: This includes credit card payments, loans, and other debts that were paid or repaid before the last four months of the borrower's credit history. A high payment history indicates a lower risk as lenders are more likely to approve borrowers with a low credit score due to lower potential for late payments. 3.

Debt-to-Income Ratio

: This compares the total amount of monthly debt (including mortgage and car loans) to your total income. High debt-to-income ratios can indicate financial stress or difficulty making payments, which lenders may look for in determining whether a borrower can afford the loan. 4.

Credit Score Range

: The FICO credit score range varies from 300 to 850 with each credit score having its own range of acceptable scores. A higher credit score usually indicates more financial stability and lower risk of defaulting on your mortgage payment. In summary, the FICO credit score is a key factor that lenders use in determining whether a borrower can afford to make a mortgage loan or not. It can significantly affect how much you need to borrow and what terms are available from your lender.

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