Credit reports and scores
Credit reports contain account and payment-history information. Credit scores summarize information from a scoring model; different lenders or products may use different models.
Know what lenders evaluate.
Credit decisions can consider several factors. Understanding the basics can help you prepare questions and compare borrowing choices.
Hard vs. soft inquiries
A hard inquiry generally occurs when you apply for credit and may affect a score. A soft inquiry is commonly used for account review, prequalification, or your own credit review and generally does not affect the score.
Debt-to-income
Lenders often compare recurring debt obligations with income when evaluating affordability. A lower monthly debt burden can provide more room for a new payment.
Affordability calculatorCosigners and joint applicants
A cosigner or joint borrower can become legally responsible for the debt. Everyone should understand payment obligations and credit consequences before signing.
Before applying
- Review your budget
- Know the amount you need
- Gather income and identification documents
- Compare rate, term, payment, and total cost
Credit problem or identity theft?
Incorrect or fraudulent credit information may require a dispute with the credit bureau or identity-theft recovery steps.
Identity theft document helpEducational information only: this page does not describe every factor LNFCU may use in a credit decision and is not a promise of approval or a specific rate.