The 5 Key Components Of A Credit Score

Dated: July 24 2018

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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

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