Credit Score 101

Credit Score 101

As a first-time home buyer, you’ll be facing a gauntlet of new experiences and challenges. One of the more confusing aspects of this complex process might be your credit score.

Your credit score is a three-digit number credit bureaus calculate based on an equation involving your past payments, open credit lines and other aspects of your credit history.

This number serves as one of the main components in determining whether you can obtain a mortgage and how high or low your interest will be on that loan. While 850 is the highest credit score possible, most Americans have a score around 670 to 739, which is considered good.

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