Credit made simple.

Looking to understand your credit score? These helpful tips are a great place to start. Join us on the path to homeownership!

Educate yourself with these 7 credit report FAQs:

How is my credit score created?

Every time you pay off debt, you improve or maintain your credit score. Every time you make a late payment, your score takes a hit. Every transaction or missed transaction affects your score, from utilities to credit card payments. Major purchases, credit card applications and delinquent payments could hurt your score—be extra careful during the mortgage process.

What is FICO and the three Credit Bureaus?

FICO is the system used to gather credit information, while the three bureaus (TransUnion, Experian and Equifax) are the data resources lenders use to determine your creditworthiness.

Why are my credit scores slightly different?

Each bureau calculates your credit using slightly different methods. Some of your credit history may not be recorded by one or more bureaus, as lending institutions report to each one at separate times. For a mortgage approval, the median score of the three bureaus is used.

What credit score should I aim for?

The FICO system calculates credit scores on a scale of 300-850. At KBHS Home Loans, LLC we require a minimum score of 580 for mortgage approval. A high score tells lenders you’re a sure thing—helping you secure a great home loan with a low interest rate.

Who are my creditors?

Any banks or lending institutions that have loaned you money. This can include anything from credit cards and utilities to car payments and student loans.

What does my terms and payment amount refer to?

This tells you your amount and how many months you’ll pay until the balance is zero. If the account is a credit card, it’s considered revolving debt. This means it’s ongoing and you might not see any number in the box.

What do the number of months revolving refer to?

The number of months your account has been open. Late payments made on the account will be shown here under 30, 60 or 90 days late.


You acknowledge that KBHS Home Loans, LLC is not a credit repair company or similarly regulated organization under applicable laws, and does not provide credit repair services. Where available, recommendations, tips and education materials are provided to you at no additional charge, and for educational purposes only. The services are intended to provide you with general information and assist you with identifying your options. The information is provided only to enable you to make your own choices about your personal finance, and is not intended to provide, legal, tax or financial advice. We do not provide any services to repair or improve your credit profile or score, nor do we provide any representation that the information we provide will actually repair or improve your profile. Consult the services of a competent professional when you need any type of assistance.

You acknowledge that KBHS Home Loans, LLC is not a “consumer reporting agency” as that term is defined in the Fair Credit Reporting Act as amended.