Factors
That Decide Credit Score
Credit
scores range between 200 and 800. Scores above 620
are considered desirable for obtaining a mortgage.
These factors will affect your score.
- Your
payment history. Whether you paid credit card
obligations on time.
- How
much you owe. Owing a great deal of money on
numerous accounts can indicate that you are
overextended.
- The
length of your credit history. In general, the
longer the better.
- How
much new credit you have. New credit, either
installment payments or new credit cards, are
considered more risky, even if you pay
promptly.
- 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/?lpid=NARI3.
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