Lenders want to give you a mortgage, but they also want to minimize their own risk. The easiest way to retard risk is by using your credit scores to make lending decisions.
Credit scores are compiled separately by three consumer-reporting agencies -- Equifax, Experian, and Trans Union. These credit-reporting bureaus calculate scores differently, and base their scores on information that may differ from other bureaus.
Your credit score is a number that reflects the information in your credit report, whether you pay your bills on time, how much you owe creditors, payoffs, and derogatory information such as liens. It also includes inquiries into your accounts from lenders, landlords, and employers.
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