5 Factors That Decide Your Credit Score
Credit scores range between 350 and 850. Scores above 680 or 700 are considered desirable for obtaining a mortgage. These factors will affect your score.
1. Your payment history. Whether you paid credit card obligations on time.
2. How much you owe. Owing a great deal of money on numerous accounts
can indicate that you are overextended.
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments
or new credit cards, are considered more risky, even if you pay
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 go to http://www.myfico.com.
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