Courtesy of Debra Franklin, REALTOR®
Five Factors that Decide Your Credit Score
Scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These factors will affect your score.
Your Payment History. Whether you paid credit card obligations on time
How Much You Owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.
The Length of Your Credit History. In general the longer the better.
How Much New Credit You Have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay 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.
For more on evaluating and understanding your credit score, go to http://www.myfico.com/?lpid=NARI3.
www.REALTOR.org/realtormag Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2003. All rights reserved.
Equal Housing Opportunity. This material is based on information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete and should not be relied on as such. This offering is subject to errors, omissions, change of price or withdrawal without notice.