A credit score is a single number that helps lenders and others decide how likely you are to repay your debts. One common credit score is a FICO score. (FICO stands for Fair Isaac & Co. Credit, the company that developed the scoring method.) FICO scores range from 300 to 850 points.

When you apply for a mortgage, your credit score is evaluated. Your credit score may also be a factor used to determine the mortgage interest rate.

Your credit score is based on several types of information contained in your credit report:

• Your payment history.
  Late payments will decrease your credit score.
• The amount of debt you owe.
  If your credit cards are at their limits, this can lower your credit score - even if the amount you owe isn't large. Similarly, consolidating your debts onto one card can also lower your score.
• How long you've used credit.
  Your credit history is important. If you show a pattern of managing your credit wisely, keeping credit card balances low, and paying your bills on time, your credit score will be positively affected.
• How often you apply for new credit and take on new debt.
  If you've applied for several credit cards at the same time, your credit score can go down.
• The types of credit you currently use.
  This includes credit cards, retail accounts, installment loans, finance company accounts, and mortgages.

Your credit score is only one factor in the credit decision. Mortgage lenders also look at your credit report, employment history, income, how much of your income goes to pay debt, and the value of the home you want to buy.