Real Estate Glossary > C > Credit Score Definition

Credit scores are also known as FICO scores. Short for Fair Isaac Company, the corporation who created the most widely used formula, this credit score measures how likely a borrower is to default on a loan. It allows lenders to determine credit risk and is based on bill payment history, length and type of credit, along with many other factors. In general, the minimum credit score to be eligible for a conventional loan will vary depending on market conditions. Borrowers with credit scores of 740 and up are considered to be the most qualified to get a mortgage loan. Folks with scores below 700 should look into FHA loans or take steps to improve their score.