The 5 Key Components Of A Credit Score

Dated: July 24 2018

Views: 304

There are five key components of a credit report that affect your overall score. 

1. Delinquencies-  Making your payments on time is important for having a good credit score. This is 35% of your credit score.

2. Debt- The amount of debt you have impacts your credit score more than many consumers realize, your mortgage and auto loans are include in this factor but your credit card debt is really the most important.  The balances you carry versus your available credit, is your revolving utilization rate. This is 30% of your credit score.  

3.  Age- Older you get more points you will score in the category.  Never close old establish credit cards. This will shorten the length of your credit history and in turn cost  mix is 3-5 revolving accounts (credit cards) and 1-2 installment account (auto mortgage) This is 10% of the factor of your credit score.

5. Inquiries- When you apply for credit, the lender will check your credit. This could negatively impact your score. Also when a potential employer checks your credit, this won't negatively impact your score. This is 10% of your credit score.

   Remember keeping track of your credit score allows you to stay on top of your credit and you will be able to create more opportunities when it comes time to purchase a home. Anyone looking for a home give me a call!       Jim Yungner 623.745.6612



Latest Blog Posts

You Gotta Be Quicker Than That

Homes are moving super fast.  This house was no exception... If you are looking for a home in this area, we will have an agent get a hold of you shortly, and send you everything that is still

Read More

Fixing Your Credit Is As Easy As 1 2 3

We all could use a little help on credit, me included.  In my time, helping home buyers reach their goal of home ownership, I have learned a few tricks of the trade to help get that score up 20

Read More

1015 E Myrtle

What a transformationThis 3 bed 2 bath home has a HUGE living space, open floor concept, custom counter tops, and a sparkling pebble tech poolHere's the link for the slide show.   And if

Read More

Rent To Own A Home Has Never Been Easier Or Cheaper

If you are reading this Post, this blog, whatever it is, you probably have a little interest in getting into a home that you will eventually buy.  I don't blame you, people throw away 10's of

Read More