Your credit score can impact you in a number of different ways. It will affect the interest rate you pay on your mortgage, your insurance premiums, as well as the cost of consumer loans. Having a clear understanding of credit scores and knowing how to achieve the highest rating possible can help save you tens of thousands of dollars in the long run.
A FICO score on a mortgage credit report will range from 300-850, and is made up of the following:
a. This considers past due accounts, collections, judgments, bankruptcies, etc.
b. The more recent any adverse credit is, the greater the impact to the score
c. The number of accounts that have been paid as agreedCredit score pie chart
a. The number of accounts with balances
b. The proration of balances to the total credit limit of revolving accounts
c. The total amount owing on specific accounts
a. Time since accounts opened and most recently used
a. The number of recently opened accounts and number of inquiries
of your credit
a. The number of various types of accounts (revolving, mortgage, installment, etc)
Credit scores change moment by moment as balances and other information is updated to the credit bureaus. By understanding the factors that determine your score, you can take specific actions that will help ensure the highest possible score. For a free credit review, contact us.