Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

How do lenders rate you on credit score and other factors?

Posted on: 05th Aug, 2005 06:16 am
Mortgage lenders use a credit score in order to determine whether you can qualify for the loan. The score is based on the information that is provided on your credit report. This score is taken into account while charging the interest rate on your loan. And, if you can maintain your credit score, then you will be saving a huge sum in the interest.

Each and every lender sets his own criteria including the credit score required for approving mortgage loans. Lenders also consider the debt-to-income ratio while judging your financial strength of paying off the loan. Based on your credit score and debt-to-income ratio, lenders provide you with a credit rating that proves how creditworthy you are.

Rating
A
B
C
D
E
Credit Score
660 or higher
620 to 659
580 to 619
550 to 579
Below 550
Debt-to-Income Ratio
Lower than 35%
Around 50%
55% or higher
Around 60%
Around 65%
Late Payment
Mortgage
No late payment for past 2 years.
30 days late for once or twice in past 1 year.
30 days late for 3 to 4 times in past 1 year.
30 days late for 2 to 6 times and 60 days late for once or twice in past 1 year.
Late for 20, 60, 90 and/or 120 days.
Installment Loan
30 days late for once within past 2 years.
30 days late for 2 to 4 times during last 1 year.
30 days late for 4 to 6 times during past 1 year.
Few 90 and 120 days late payments since past 1 year.
Late for 20, 60, 90 and/or 120 days.
Revolving credit
30 or 60 days late for once in past 2 years.
30 days late for at least 2 times in last 1 year.
60 days late for 2 to 4 times in last 1 year.
Few 90 and 120 days late payments since past 1 year.
Late for 20, 60, 90 and/or 120 days.
Other Criteria
Good credit profile for last 5 years, no bankruptcy within the last 10 years.
No 60-day late payment. Discharged from bankruptcy 4 years ago.
Discharged from bankruptcy 2 years ago.
Discharged from bankruptcy within last 1 year.
Bankruptcy or foreclosure.

Related Article
How do lenders rate you on the basis of credit score?
Hi Linkmanager,

We have several articles on topics related to credit rating issues. What type of articles are you looking for? Please let me know.

Thanks,

Caron.
Posted on: 12th Mar, 2007 10:29 pm
im thinking maybe we should have a separate thread on people posting their credit score and sort of get an idea of where people are, and what they are doing about their score, i think that will be quite educational and helpful in some ways. :)
great post, thanks Jessica :)
Posted on: 04th May, 2007 01:18 am
Hi Ligroy,

Welcome to Mortgagefit forum.

"im thinking maybe we should have a separate thread on people posting their credit score and sort of get an idea of where people are, and what they are doing about their score, i think that will be quite educational and helpful in some ways."

There is a category in the forum named credit rating which people can use to get help regarding their credit problems and similar questions.

Colin
Posted on: 04th May, 2007 01:09 pm
Awesome post, this is really good information to know, especially for those of us trying to rebuild credit.

Do you know where one can find a chart like this on how other lenders besides mortgage lenders rate your score?
Posted on: 15th Mar, 2008 06:02 am
This is definately great info. Its alot easier seeing spelled out the way you have. We just went through the mortgage thing. I see by your chart we scored a good B.
Posted on: 22nd Mar, 2008 05:24 pm
What is the highest score that one could attain. You always see 660 or higher. I know I am not near it but that is something I have always wondered.
Posted on: 03rd Jun, 2008 03:32 am
I think the highest is 800 or 799 at least that is what I have seen when I would help clients try to get apartment rentals. They will check the score and use it to determine weather to rent to them or not.

My score needs some help, I have been trying to work on things for a while now, I hope to see some good results soon. I have not checked it in a while, I will probably check it sometime here soon.
Posted on: 04th Jun, 2008 03:08 pm
I think you are right erb, I would love to see a 650 or above next time I check mine out. crossing my fingers.
Posted on: 06th Jun, 2008 11:42 am
I wish you the best on your score barto, how often do you check it, I think that I read somewhere that each time it is pulled that it lowers the score, could be wrong, may be it is just for companies pulling your score.

Does anyone know if an individual pulls there own score if it will lower it or is this just for a creditor pulling your record?
Posted on: 07th Jun, 2008 06:39 am
I am not sure if it lowers your score or not, i have only been checking it like once a year,
would be great if someone knew and would post the answer here.
Posted on: 07th Jun, 2008 01:34 pm
I always wondered if checking your score lowewred it also. I have heard that if your yourself is checking it will not lower it but if others like banks and credit cards do then it can lower your score.
Posted on: 08th Jun, 2008 10:07 am
From what I have been reading, I don't think that a self check will lower your score.
Posted on: 08th Jun, 2008 01:00 pm
I didn't think it should after all it is your own report. Finding it hard to keep up with all these posts. Been busy and my arm sucks lately. Sorry it took so long.
Posted on: 10th Jun, 2008 04:07 am
I do believe that your own inquiry is seperate from the hard and soft inquiries made by companies.
Posted on: 10th Jun, 2008 03:43 pm
I think all of you right. I do not believe that checking your own credit situation is something that is held against you. I have not read anywhere that this is the case. I have never seen my credit score/rating lower because I have pulled my score. Just my thoughts here.
Posted on: 10th Jun, 2008 06:22 pm
Page loaded in 0.249 seconds.