Additional Information

Improving Your Credit Rating

Even if you have not fallen on hard times, you need to know about your credit rating and how to make sure it accurately reflects your credit history. Negative information in your credit report can adversely affect your ability to get credit or get the best loan interest rates. Information about your credit history is collected by credit bureaus, who then sell this information to lenders and others who need it in connection with loans, getting a job, or other financial applications you may make. You must authorize the credit bureaus to give out this information by signing a waiver on an application you make. There are three primary credit bureaus in the United States who collect and disseminate this information: Equifax, Experian, and TransUnion. You should obtain a copy of your credit report from each of these bureaus at least once a year to verify that the information they have is correct.

You build your credit report every time you apply for and use credit. Creditors send information about your credit history with them to one or more of the credit bureaus. Most of the information is accurate and timely, but sometimes it is not. When you miss loan payments, pay late, default on a loan, or have a debt dropped (called a charge-off), that information goes on your credit report.

Credit Karma

Don’t let credit issues detour your applicants’ dreams of homeownership. Lending Hand, an exclusive credit score consulting service of Credit Plus and its highest-tier scoring tool program, can give applicants the highest probability of a successful rescore. Whether you’re targeting an increase of 5 or 105 points, or a specific product. Credit Score Tool Know Your Score and Protect It Use our credit score tool in online and mobile banking to stay on top of your credit! View your credit score and refresh it daily.

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What Is Your FICO Score and Why Is It Important?

Just because you want to buy a home doesn't mean that a lender is eager to loan you money. Lenders look at your past history in handling your finances, which is where the FICO score comes in. By the end of this article, you will be able to identify a good FICO score and how it was determined.

The FICO score boils your credit history down to a three-digit number that instantly tells a lender whether you are creditworthy. This score dictates what terms—if any—you will be offered in a mortgage. Pioneered by the Fair, Isaac Corporation, this score and similar ones used by other credit reporting services rely on the following factors:

Credit Score Ratings Chart

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How Lenders Rate Creditworthiness

Lenders must evaluate the risks of lending money to others. In commercial lending, creditors generally follow the same principles to evaluate a borrower's creditworthiness.

Phase 1 captain rex. A creditor usually looks at three factors known as the 'three Cs': capacity, capital, and character.

• Capacity. The present and future ability to meet your financial obligations. Some of the areas examined would be your work history and the amount of debt that you already owe.
• Capital. Savings and other assets that could be used as collateral for loans. Even if you are not required to post collateral, many creditors express a preference that you have assets other than income that could be used to repay a loan.
• Character. This boils down to trustworthiness, promptness in paying your existing bills and other debts, and your credit history.

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* Credit Scorecard Information: Credit Scorecard is provided by Discover Bank, and includes a FICO^® Credit Score and other credit information. Credit Scorecard information is based on data from Experian and may differ from credit scores and credit information provided by other credit bureaus. This information is provided to you at no cost and with your consent. You must be 18 years old and a U.S. resident or a resident of American Samoa, Guam, Northern Mariana Islands, Puerto Rico or the Virgin Islands. Your Credit Scorecard will be refreshed the later of every 30-days or the next time you log in to Credit Scorecard. Discover and other lenders may use different inputs, such as a FICO^® Credit Score, other credit scores and more information in credit decisions. This product may change or end in the future. FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.

Discover credit monitoring and Social Security number alerts are offered by Discover Bank at no cost, only available online, and currently include the following services: (a) daily monitoring of your Experian^® credit report and an alert when a new inquiry or account is listed on your report; (b) daily monitoring of thousands of Dark Web sites known for revealing personal information and an alert if your Social Security Number is found on such a website. This information is provided for free, as part of Discover's Free Credit Scorecard membership to both existing and new members upon successful product registration. Alert services are based on Experian information and data which may differ from information and data at other credit bureaus. Monitoring your credit report does not impact your credit score. This benefit may change or end in the future. Discover Bank is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. To see a list of Frequently Asked Questions, visit discover.com/free-credit-score.

Free Credit Score

¹The percentages reflected are based on the five categories for the general population.