Credit scores range between 300 and 850, with scores above 620 considered desirable for obtaining a mortgage. For more information about a mortgage, click HERE. There are 5 main factors that determine your credit score. Here are the factors that affect your score:
- Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history. For more information, click HERE.
- How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
- The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
- How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
- The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
Each one of these factors will play into the credit score differently, meaning that each factor is not weighted the same. For example, your payment history is weighted more or is more important than the types of credit. Here is the breakdown:
For more information on you credit score or real estate contact:
Sherri Melton - Realtor
2013 KW Quadruple Gold Sales Award-Over 11 Million in Sales in 2013
Associate Leadership Council Member 2007 - 2014
Accredited Staging Professional - IAHSP Member
Keller Williams Realty Augusta Partners
3633 Wheeler Rd., Suite 125
Augusta, GA 30909
Cell/Text 706.495.1135
No comments:
Post a Comment