This, of course, would also lower a score. It is important to point out that credit scores are not based on income or assets nor are scores based on sex, race, nationality, or religion. Scores are based simply on your credit history. Credit scores actually expedite the loan approval process. Prior to the widespread use of credit scores, underwriters needed to spend a significant amount of time analyzing the credit report.
Credit scores allow for an objective decision rather than a subjective one.
Credit scores are deemed to be an accurate assessment of one s credit history and the likelihood of repayment in a timely manner. A lender can quickly determine which applicant fits their criteria for credit by simply looking at the applicant s score. A credit score is sometimes referred to as a FICO Score. It would not be uncommon for a lender and a creditor to order your credit report on the same day from the same repository with the end result being significantly different scores. Unfortunately, lenders and creditors do not have to reveal the criteria they select for credit scoring.