Understanding Your Credit Score
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The components that make up your FICO score are:
| Your credit history – 35%. Whether you make payments on time, any defaults or bankruptcies and past due amounts affect this part of your score.
Your credit use – 30%. The number of accounts you have open and how much you owe on each. How long you’ve had your credit accounts – 15%. Having a long history of using and paying on your accounts is a positive factor on your credit. Types of credit used – 10%. Having different types of credit, such as installment loans (car loans), revolving credit (credit cards) and mortgage loans and managing them properly can positively impact your FICO score. New accounts – 10%. Opening and using new accounts impacts your score, although applying for lots of different credit at the same time will hurt your rating. Note that inquiries into your credit form a number of businesses of the same type in a short period – such as a mortgage lender – will not impact your credit score. |
At Realty World Premier Associates, we take GREAT PRIDE in assisting our clients in every way we can. If you’d like to know what your credit score is or whether or not you can qualify for a mortgage loan to purchase a home, then contact me directly and I’ll match you to an amazing local lender at NO CHARGE to you.
Happy Easter weekend!
Related articles
- Understanding Your Credit Score (loans.org)
- What Information Goes Into My Credit Report (And How Can I Improve My Score?) (myinvestingblog.com)
