Financial Basics Frequently Asked Questions

A credit score of 700 or above is typically considered “good,” but your credit score is only one factor considered by lenders when applying for a loan. Different lenders may have different requirements for credit scores.

You can improve or maintain your credit score by managing your credit effectively, paying bills on time,  and keeping balances low.

Learn more about building and maintaining your credit score.

Your credit score is a number between 300 and 850. The three credit reporting bureaus calculate your credit score using a credit scoring model based on information provided by your creditors.

Learn more about credit.

You actually have multiple credit scores, which are calculated using a credit scoring model based on the content of your full credit reports. Each of the three major credit reporting bureaus — Equifax, Experian, and TransUnion — may have slightly different information from your creditors, resulting in different scores. And different scoring models, like those licensed by FICO and VantageScore, can produce separate scores.

You can find out your credit score(s) in several ways: many credit card, bank, and loan statements include your score or a link to access it online; you can sign up for a free or paid credit scoring website; or you can purchase your score directly from the credit bureaus.

Learn more about how your credit score can affect your finances.

Most lenders look at credit scores from all three credit bureaus — Equifax, Experian, and TransUnion — when evaluating your loan application. It’s important for you to review your credit reports so you can correct any errors that may affect your eligibility for a mortgage.

Learn more about credit.

A debt-to-income (DTI) ratio is the amount of debt you have compared to your income. In other words, it is the percentage of your total monthly gross income that goes toward paying your monthly debt payments (housing, credit cards, auto loans, etc.).

Learn more about DTI ratios.

To calculate your debt-to-income ratio (DTI), add up all your monthly debt payments, divide that amount by your gross monthly income (before taxes), and multiply by 100:

DTI = [Total monthly debt payments ÷ gross monthly income] × 100

Total monthly debt payments may include housing payments, student loans, car loans, alimony or child support, and minimum credit card payments. When calculating your DTI, monthly debt does not include monthly payments for things like utilities or phone and internet service.

Learn more about why DTI is important.

Housing counseling can provide homeowners and renters with helpful guidance during times of hardship and disaster-related crises. A HUD-approved housing counselor is a trained specialist who can provide free, one-on-one support to understand your challenges and meet your goals, such as reviewing relief options, your finances and debt, submitting insurance claims, or developing a personalized action plan.

Call 1-855-HERE2HELP (855-437-3243) or schedule an appointment.