Credit Score

A credit score is a number built from a borrower's credit history that estimates how likely they are to repay debt. In the US the common models run from 300 to 850. DSCR loans skip income verification, but they still pull credit, and the score affects both approval and pricing.

Because a DSCR lender does not check your tax returns, the credit report is one of the few pieces of the file that is about you rather than the property. Minimum scores vary by lender and program, and a higher score usually buys a lower rate or a higher allowed loan-to-value.

The score also works through the ratio. A lower rate means a smaller payment, and a smaller payment means a higher DSCR on the same rent. On a thin deal, the difference between two rate tiers can decide whether the property clears the lender's minimum.

Further reading: Credit Score on Wikipedia.