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Factors That Will Influence Your Credit Score.
Credit Scores range between 200 and 800. Scores at 620 and above, are considered desirable for obtaining a mortgage.
The following Factors will affect your score:-
1. Your payment history. Did you paid credit cards on time or not? If you were late, how late? If you have filed for bankruptcy, if there are any liens or collections on your credit, this will also affect your score.
2. How much Do you owe? Your Debt to Income Ratio plays an important part in prequalifying for a mortgage. If you owe a great deal of money on a number of accounts that can indicate that you are overextended. This brings your debt to income down, however if you have a proportion of balance to total credit limits, then this is not altogether a bad thing.
3. The length of your credit history. In general, the longer the better. Even if you do not use your credit card or have not used it in some time, do not close it. It is better to have it open with zero balance then not have it at all and do try and use it about one every 6 months.
4. How much new credit do you have?. New credit, whether they are installment payments or new credit cards, are considered more of a risk, even if you pay promptly. The lender needs to see that you can use your credit responsibly.
5. The types of credit you use. Generally speaking, it is more desirable to have more than one type of credit - an installment loan, credit cards and a mortgage is a good mix, for example. If you don't have any of the previously mentioned credit lines then proof of payment of rent, utilities, phones may help as well.
Remember, if you have any questions about the process - contact me today! away!
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Sallyanne Holmes - GRI
A Licensed REALTOR ® in the State of Colorado |
Merit Co Inc
6120 Tutt Blvd
Colorado Springs, CO 80923 |
Cell: (719) 660-0622
Business: (719) 596-7800
Fax: (719) 596-1784 |
Email: Sallyanne@homesforsaleco.com |
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