Hello, today I’m going to be talking about credit scores and how they can affect your ability to get a good mortgage or not get one at all.
How to obtain a higher credit score:
We all know that the higher a credit score is, the better off you are. I recently spoke with one of my mortgage experts and she told me some interesting things about what constitutes a credit score.
- About 35% of your credit score is calculated from your payment history and whether or not you were paying on time.
- The amount that you owe versus the amount that is available makes up for 30% of your score.
- The length of your credit history makes up 15% of your score.
- Types of credit you have out will account for 10% of your total score.
- New credit will make up another 10% of your score.
Credit scores can range from 300 to 850, but I have never seen any that low or that high. Typically, the best borrower is above 700, but this doesn’t mean that you’re ineligible for a loan if you are below this mark.
If you’re having trouble obtaining a credit score that you’re comfortable with, or want to improve your own score, then feel free to contact me and I would be glad to work something out. I can be reached at (203) 727-8621 or email me at Andy.Sachs@CBMoves.com