Credit Score

A credit score is a number, most often a FICO score in the United States, that summarizes a borrower's history of using and repaying credit. It sets the rate and terms on the BRRRR refinance, and it matters for every loan when the process repeats.

Hard money lenders focus mostly on the property and the investor's experience, but long-term lenders price loans by score and loan-to-value. A lower score usually means a higher rate or a lower maximum loan, and both reduce what comes back at the refinance or the cash flow after it.

Several open short-term loans, new credit lines and hard inquiries during the rehab can pull a score down right before the refinance. Minimum scores and pricing steps differ by lender, so getting a quote early shows where the investor stands.

Further reading: Credit Score on Wikipedia.