Courtesy of Peter Lupus, Realtor®, e-PRO
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, Click here.
www.REALTOR.org/realtormag Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2007. All rights reserved.