Credit history is considered when applying for a mortgage loan. Your credit score, also known as a FICO score, helps determine the types of home loans you can qualify for and affects your interest rate. To assess creditworthiness, lenders review your score to see how you've handled past credit obligations. This is a good indication of how you will handle them in the future. A higher credit score may help you qualify for a better interest rate and a lower down payment.
By law, you are entitled to one free credit report per year. Visit annualcreditreport.com or contact any of the following credit reporting agencies:
• Equifax
• Experian
• TransUnion
If you see an error in your credit report, document it and report it quickly.