5
Factors That Decide Your 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.
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