Five Factors that Decide Your Credit Score

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.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2003. All rights reserved.

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