Have you ever wondered what exactly makes up your credit score?
According to FICO, the percentages in the scoring process are:
Previous Payment History - 35%
This includes trade line information specific to payment history, collections, judgments and liens, public records, and takes into account delinquencies, if any.
Outstanding Debt - 30%
Your credit score is affected by maxed out credit cards, the number of open accounts and their balances, and the relationship between the balances and credit limits.
Credit History Timeline - 15%
Keep in mind, the older the derogatory credit, the less it reflects the score.
Pursuit of New Credit - 10%
This factors in the number of new inquiries, the time frame since the last inquiry, and the number of new accounts opened in the past year.
Types of Credit in Use - 10%
Installment loans, revolving accounts, mortgage accounts, and debit accounts are all counted in this number.
Your credit score is one of things taken into consideration when you apply for a home loan.
We would be happy to connect you with a knowledgeable local mortgage lender who can look at your financial situation and help you get pre-qualified. Click below or email us at concierge@lizmoore.com to get started.
Are you interested in hot real estate topics, tips and trends?
Click below to subscribe to our blog!
