Your credit score is one of the most important factors that are considered when you apply for a loan; it helps lenders decide the likelihood that you will repay your debt.
Credit Scores range from 300–850, the higher generally the better, and are based on a multitude of factors:
Your payment history
The amount of debt you owe
How long you've used credit and how you've managed it
How often you apply for new credit and take on new debt
The types of credit you currently use
Your credit score and accompanying credit report signifies your creditworthiness to lenders and the likelihood that you will repay your loan obligations, such as your mortgage. Watch the video below:
3 Tips to Improve Your Credit by Freddie Mac
Learning strong lifelong money management skills can help you feel confident about your financial health no matter what unanticipated obstacles arise.
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Note, information in this post was derived from freddiemac.com.