Credit scores range between 300 and 850. But scores above 620 are considered desirable for obtaining a mortgage. There are programs available with lower credit scores, but over 620 will allow you to obtain a conventional loan. The following will affect your score:
- ) Your Payment History-Making your payments on time is crucial to having a good credit score. Bankruptcy filing, liens, and collection activity also affect your history.
- How much you owe-If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. Keep your credit debt utilization to under 20% of your credit limit on each card.
- The length of your credit history-In general, the longer an account has been open, the more It helps your credit score.
- How much credit you have- New credit, whether in the form of installment plans or new credit cards, is considered more risky— even if you pay down the debt promptly.
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