Lenders and mortgage companies take many factors into consideration when they are considering loaning you money to buy a house. Along with your employment, annual income and the value of the property you are wishing to purchase, they take a close look at your credit score. Knowing what your credit score is prior to applying for a mortgage may help you acquire the kind of loan you need.

What Is a Credit Score?

Your credit score represents your credit history and is calculated from five major components including your payment history, amounts owed, length of credit history, the types of credit in use and the number of recent inquiries about your credit. It ranges from 300 to 850, the higher the score, the better.

There are two major types of credit scores:

1. FICO — developed by Fair Isaac and is the most popular
2. Vantage Score — an alternative to FICO and developed by the three main credit reporting agencies (Experian, Equifax, and TransUnion)

Where do I find my Credit Score?

There are numerous ways that you can check your credit score, but these are relatively simple methods to find your score quickly and accurately.

• Use a credit monitoring service: Credit Karma, Credit Sesame, and Quizzle offer complimentary credit scores after you register for a free account. None of the scores are FICO scores, but they give a fairly accurate assessment of whether your credit falls in the good, poor or bad categories.
• Check through your credit card: Many credit card companies offer a report of your current credit score on your monthly statement. Check to see if your credit card company is on the list of those who offer this service.
• Get it from the credit reporting agencies: You are entitled to a free credit report one time each year. Use annualcreditreport.com to access your free reports (along with scores) or call 877-322-8228.

Once you’ve accessed your credit score, you have the opportunity to check into mortgages or get to work repairing your score for a future purchase. Keep in mind that Pro X Real Estate Realtors are always available to help!