Your Credit Score

Print Friendly and PDF
Your Credit Score

You wouldn't think a three-digit number could be so significant in your life.  It is a major factor in determining whether you will quality for a home, car, or business loan.  It also is a major factor in determining the rate of interest you'll receive.

What is this three-digit number and what contributes to it being high or low?

Your credit score is a number from 200 to 800.  Your credit score reflects your borrowing and payment history.  If you are closer to the 800 range, congratulations!  You will be seen in the eyes of creditors and "credit worthy" and will likely receive a loan at great rates.  

 

If you are closer to the 200 range,(usually under 500) you may not qualify for a loan.  But don't fear, your credit score can go up with a littler work from you.

The three main reporting agencies: TransUnion, Experian, and Equifax. These agencies track and report your payment and debt history.   

There are several factors that contribute to this score.

 

Type of Credit: Lenders like to see that you have a history of multiple types of credit. This can include credit cards, installment loans, and mortgages.

 

Amount of Debt: The more debt you have, generally riskier you appear to a lender. This means paying down or off debt is a great way to make yourself more desirable for a home loan.

 

Payment History: You want to be on time with every bill. Don't be late. In the eyes of creditors/credit agencies it shows that you are unable to make your payments and either have too much debt and/or too little income.  This includes everything from cable and phone to credit card payments. Late payments may be reported to the credit reporting agencies and will negatively affect your score.

 

New Credit: If you are considering buying a new home, Do NOT under any circumstances open new lines of credit. New lines of credit can decrease your score and may indicate to a lender that you are spending too much.

 

Credit History Length: If you are a new borrower, you are at a slight disadvantage because you have not established  credit history. The longer you have been borrowing you gives lenders a better picture of what kind of borrower you really are.

To see where your loan qualifications stand and get a free pre-qualification and review of your credit report contact:

Jason Servais CMPS,

Asst Vice President/Mortgage Banker

NMLS #: 363153 / AZ License# LO -0918518

The Servais Group

 OnQ Logo large.jpg On Q NMLS #5645

16150 N Arrowhead Fountains Center #260, Peoria, Az 85382  Phone:  602-308-8565   Cell:  602-410-2118   

Comments

Post new comment

RE/MAX Renaissance Realty

9059 W Lake Pleasant Pkwy Ste B200, Peoria, AZ 85382 | Phone:(623) 486-5700

Equal Housing Opportunity