Things that can affect your credit score

April 16, 2021 in Blog, Home Buyer Guide, Video Library

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:

  1. ) 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.
  2. 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.
  3. The length of your credit history-In general, the longer an account has been open, the more It helps your credit score.
  4. 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.

Watch the video to learn more:

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