5 Factors That Decide Your Credit Score

Dated: March 5 2019

Views: 73

5 FACTORS THAT DECIDE YOUR CREDIT SCORE

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. 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, visit www.myfico.com.

The data relating to real estate for sale on this site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than Results Realty Services are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers. 


Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. 

Copyright 2019 Georgia MLS. All rights reserved. 

Latest Blog Posts

Why You Shouldn’t Wait To Buy

Here’s why waiting to buy a home may cost you in the long run.Looking to buy a home? Search all homes for sale Looking to sell your home? Find out your home's value What is the cost of?

Read More

Should You Buy During the Holidays?

Here are three reasons why it’s a great idea to buy during the holidays.Looking to buy a home? Search all homes for sale Looking to sell your home? Find out your home's value We often get

Read More

Make Your Offer Stand Out to Sellers

Here are four tips to help get your offer accepted in this market.Looking to buy a home? Search all homes for sale Looking to sell your home? Find out your home's value Today I’m discussing

Read More

Where Is the Atlanta Market Right Now?

Here’s a snapshot of Atlanta real estate as we near the end of 2021.Looking to buy a home? Search all homes for sale Looking to sell your home? Find out your home's value As we head into

Read More