Understanding your credit
Your credit score and history help lenders assess mortgage eligibility and terms. Understand what is reported, what affects your score and how to keep your credit strong.
Your score and report are different.
They work together to help lenders understand how you have managed borrowed money.
Your credit score
A number based on your credit profile that estimates how likely you are to repay future debts.
- Most scores range from 300 to 850.
- You can have more than one score.
- A higher score may help you access better loan terms.
Your credit report
A detailed record of your credit use: accounts, debts, payment history and available credit.
- Shows what you borrowed and how you repaid it.
- Helps lenders evaluate lending risk.
- Provides information used to calculate your scores.
What is in your credit report?
Lenders review your accounts and repayment history to understand the risk of lending to you.
Accounts & payments
Reported debts from banks, credit card companies, mortgage lenders, retailers and other creditors.
Shows balances, available credit and whether payments met the amount due and arrived on time.
Serious credit events
Bankruptcies can appear as public records. Foreclosures may appear in mortgage account history.
Most negative information generally remains for seven years; bankruptcies may remain for up to ten years.
Credit inquiries
Records of requests to review your credit, including applications for new credit.
Hard inquiries may affect scores. Soft inquiries, including checking your own report, do not.
Collection accounts
Reported accounts referred to a collection agency after a debt was not paid as agreed.
Check that the account, balance and status are accurate.
Review your reports before applying.
You have the right to review your credit reports and dispute inaccurate information.
Check all three bureaus
- Equifax
- Experian
- TransUnion
Information can differ between reports. Reviewing your own reports does not lower your credit scores.
Get your free copies
Federal law provides a free report from each bureau every 12 months. Free weekly reports are also available through AnnualCreditReport.com.
Or call 877-322-8228Look for inaccuracies
- Accounts you do not recognize.
- Incorrect balances or payment history.
- Duplicate accounts or incorrect account status.
Dispute errors with the credit bureau and the company that supplied the information. Keep supporting documents.
Five things that affect your credit score
Scoring models weigh factors differently, but these are common parts of the picture.
Payment history
Paying debts on time supports your score. Late or missed payments can lower it.
Debt & credit use
Balances on credit cards, student loans and car loans matter. Cards near their limits can hurt your score, even when the dollar balance seems small.
Length of credit history
A longer record of responsible borrowing, low balances and on-time payments can support your score.
New credit applications
Frequent applications and new borrowing can affect your score. Applying for several credit cards at once may lower it.
Types of credit
Your mix may include credit cards, retail accounts, installment loans, finance company accounts and mortgages.
You do not need to borrow just to add another account type.
Small habits. Stronger credit over time.
Your credit history and scores change. Keep reviewing them and building consistent habits.
Pay on time
Use reminders or automatic payments to help avoid missed due dates.
Keep balances manageable
Watch how much of your available credit you use.
Apply thoughtfully
Only apply for credit you need. Discuss planned credit changes while preparing for a mortgage.
Review regularly
Check your reports and scores over time. Address inaccuracies early.
Keep your homebuying plan moving.
Connect your credit preparation with your budget and cash needed to buy.
Plan your price range
Review income, debts and the complete cost of owning a home.
What can you afford? →Understand your down payment
Explore down payments and mortgage insurance.
Down payment and PMI →Learn about your rights
Find official guidance on reports, scores and credit disputes.
FTC credit and debt resources ↗CFPB: Credit scores ↗ · CFPB: Reporting timelines ↗ · Experian: Public records ↗
Understand where you stand before you shop. Call FHL Mortgages 407-242-7758
Educational information only; not an approval or commitment to lend. Credit improvement, eligibility, rates and terms are not guaranteed and depend on the full application and loan requirements. FHL Mortgages is a DBA and mortgage department of Florida Homes & Loans Inc. | NMLS #2295908. Gemma Peterson | NMLS #2121526. Request secure upload instructions before sharing credit reports or financial documents.