Before lenders make the decision to lend you money, they need to know that you are willing and able to repay that mortgage. To understand your ability to repay, they look at your income and debt ratio. To assess how willing you are to repay, they use your credit score.
Fair Isaac and Company developed the original FICO score to help lenders assess creditworthines. You can learn more on FICO here.
Your credit score is a direct result of your repayment history. They don't consider income or personal characteristics. These scores were invented specifically for this reason. "Profiling" was as bad a word when FICO scores were first invented as it is now. Credit scoring was envisioned as a way to take into account only what was relevant to a borrower's likelihood to repay a loan.
Your current debt level, past late payments, length of your credit history, and a few other factors are considered. Your score results from both positive and negative information in your credit report. Late payments count against you, but a record of paying on time will raise it.
Your report must have at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This payment history ensures that there is enough information in your report to assign a score. Some people don't have a long enough credit history to get a credit score. They may need to spend a little time building up a credit history before they apply.
SelectPlus Lending can answer questions about credit reports and many others. Give us a call at 844-773-1401.