A credit score is a number lenders use to help them decide: "If I give this person a loan or credit card, how likely is it that I will get paid back on time?" A score is a snapshot of your credit risk picture at a particular point in time. There are many types of credit scores, but the most commonly used are credit bureau scores. The most widely used credit bureau scores are developed by Fair, Isaac and Company. These are known as FICO scores.

FICO scores (credit scores) are what the vast majority of American mortgage lenders use to evaluate home loan applicants' creditworthiness. The scores are based on a number of factors that analyze the electronic credit files maintained on virtually all adults in the U.S.

The scores range from the 300s to around 850, with higher scores indicating lower risk (better loan rates). Many lenders reserve their most favorable quotes of rates and fees for applicants in the upper FICO score ranges, 700 and above. Mortgage applicants in the low 600s and below get progressively higher rate quotes and are charged higher loan fees.

Your FICO score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting. Your score considers both positive and negative information in your credit report.

Credit scores analyze a borrower's credit history considering numerous factors such as:

There are really three FICO scores computed by data provided by each of the three bureaus--Experian, Trans Union and Equifax. Some lenders use one of these three scores, while other lenders may use the middle score.

Your credit report will:

• List all accounts that have had activity in the past seven years
• List all inquiries made on the client in the past six months