What to Know About Credit Scores

What to Know About Credit Scores


About Credit Scores

Credit scores range between 200 and 850, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

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

How much you owe and where.
If you owe a great deal of money on 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.

The length of your credit history.
In general, the longer an account has been open, the better.

How much new credit you have.
New credit—whether in the form of installment plans or new credit cards—is considered riskier, even if you pay down the debt promptly.

The types of credit you use.
Generally, it’s desirable to have more than one type of credit—such as installment loans, credit cards, and a mortgage

Realtor Magazine/Copyright 2015

Related posts

Staging Secrets for a Quick Sale

According to the National Association of Realtors, staging a home prior to listing it can result in...

Continue reading

Virtual Tour – Ask These Questions!

Virtual Tour - Ask These Questions! Open houses and home tours are quickly turning into virtual...

Continue reading

Know Title Insurance

WHAT TO KNOW About Title Insurance Title insurance protects your ownership right to your...

Continue reading
Wordpress IDX Plugin