What Factors Affect Your Credit Score

Dated: 08/30/2018

Views: 136

Hello!

I hope everyone has had a great week so far! Hang on...it's almost FRIDAY!!!

It's been a while since I've been on here but today I want to write about credit scores. I'm writing this in hope of helping someone out there understand what following factors affect your score. 

Credit scores range from 200-850, scores above 620 are considered desirable for obtaining a mortgage.

1. Your Payment History

Did you pay your credit card bills on time? Bankruptcy filing, liens, and collection activity also affect your history.

2. How Much You Owe and Where

If you owe a great deal of money over numerous accounts, it can indicate that you are overextended. However, spreading debt among several accounts can help you avoid approaching the maximum on any individual credit line.

3. The Length Of Your Credit History

In general, the longer an account has been open, the better.

4. How Much New Credit You Have

New credit-whether in the form of instalment plans or new credit cards-is considered more risky, even if you pay down the debt promptly.

5. The Types Of Credit You Use

Generally, it is more desirable to have more than one type of credit-such as installment loans, credit cards, and a mortgage.

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Hopefully this information has helped out someone who perhaps has been struggling with their credit score or just wanted to learn more about what affects a credit score. I'm happy to help with any questions so contact me at (407)775-1642 or email at [email protected]

Thank you and enjoy your weekend!

Information provided by the NAR

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Itzel Rosa

Itzel Rosa is a young, motivated, and professional realtor who guarantees her clients a unique experience that exceeds their expectations. Her top priority is to assist her clients in all their real e....

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