What Is My Credit Score - By Captain Credit

What is my credit score and what do the numbers mean to me and to mortgage lenders?

This is a common question among consumers in general and home buyers in particular. In fact, anyone can benefit from asking the question what is my credit score -- whether or not a person is buying a home. It's just a good piece of information to know, so we are going to examine it in more detail here in this article.

Hi folks. I'm Captain Credit, the resident expert here at Home Buying Institute for all things related to credit scores and reports.

If you are planning to buy a home in the near future, and you have been asking the question "what is my credit score" ... then you've picked a good article to read.

Let's kick off our discussion by explaining why credit is important for home buyers. You see, when you go to apply for a mortgage loan in order to pay for that new home, mortgage lenders are going to examine several aspects of your financial background.

The lender will look at your debt-to-income ratio (a comparison between how much money you make and how much you owe) and, of course, they will look at your credit scores.

Perhaps you noticed that I said "scores" in the plural sense. That's because you actually have three credit scores -- one for each of the major credit-reporting companies (TransUnion, Equifax and Experian). So, the question of what is my credit score should really be what are my scores ... plural, for the three scores.

Here's the good news. There are several websites where you can obtain all of this information at once, which is definitely the super easy way to go. And as a superhero, I like super easy!

For example: Click here for your complete credit history

Components of a Credit Score

To continue answering the question "what is my credit score" we need to talk about the components that make up this score.

Your history of payments on things like credit cards and car loans is a major part of your credit score, accounting for somewhere around 35% of the total number. It only makes sense why this history would be important to mortgage lenders, but it shows how you've done over the years in terms of paying back loans.

Your total amount of debt is another big component of your credit score. For example, if you have a lot of debt (perhaps more than you can afford to pay off), then your credit score will reflect this. And it won't help your cause any when applying for a mortgage loan.

What is my credit score and how does it all add up? Well, we've tackled this question. Now you know that your score is reported by three organizations (not just one), and you know that your score is derived from your financial actions in the past. And on top of that, I've provided a link to a trustworthy website where you can answer the "what is my credit score question" once and for all.

Here it is again: Click here for your complete credit history

Now we must answer another important question for home buyers (or anyone seeking a loan, for that matter):

What is a Good Credit Score Anyway?

Once you've determined your own score, it doesn't tell you much until you learn what is considered to be a good score in the U.S. Once you have this final piece of the puzzle, you can not only answer the question what is my own credit score -- you can compare yourself to the national average as well. In this way, you'll know if you fall into the average, above-average or below-average category.

Here's an article to help you understand what constitutes a good credit score in the U.S.

That wraps up today's lesson. I hope this has helped you understand the world of home buying in general, and credit scores in particular. More importantly, I hope you are able to take this knowledge and not only use it for yourself, but share it with others as well. So that the next time you hear somebody ask: What is my credit score .... you'll be able to help them out.