Your credit score is a measure of your financial health, and shows lenders their level of risk if they lend you money. Your credit score is a number. Usually it falls between 300 to 900. Higher the score means better credit. A credit score above 700 proves you manage your credit well, paying your bills on time, meaning a lender should feel comfortable to lend you a money.
Factors That Influence Your Credit Score
Each credit-reporting agency (Equifax, Transunion) uses their own proprietary formula to calculate credit scores. Below are the factors affecting the credit score:
Note: You can check your credit report from Equifax or Transunion and verify if there are any errors and anything to be done to correct the credit. If you exercise this option 3-4 months prior to your house purchase decision, it will help you a lot.