The importance of the individual underwriter’s examination of credit has greatly diminished in recent years. This is due to computer underwriting and the credit score. Your credit score is a number determined by a complex mathematical formula. The Fair Isaac Corporation (FICO) invented the credit score and is the dominant company supplier of the formula. Your credit score is commonly referred to as your FICO score.
Not all lenders use FICO scores, and some do not use them for all the loans that they offer. However, the number of lenders using FICO scores is increasing. It will not be long before almost all lenders will rely on them to some degree in making decisions of approval, rates, and fees.