Sometimes a credit score can feel like one of life’s little mysteries. How is it figured? How much does it really matter? Who has access to it?
So many questions when in fact, according to FICO, the company best known for calculating a person’s credit score, there’s 5 factors that may help you with a good score.
Factor #1 – Make Payments On Time. Do you pay your accounts on time? Get them in late and your score may go down.
Factor #2 – Don’t Use All Your Credit. Not using all the credit you are given can be a key to a better score. In other words, don’t max out every card!
Factor #3 – Use the Same Card for a Long Time. The longer you have had a responsible credit history the more likely you will have a higher score.
Factor #4 – Don’t Open New Cards All the Time. When was the last time you opened a new credit line? Been a while? That’s good! Opening many accounts in a short period of time is a red flag and can lower your score.
Factor #5 – Vary the Types of Credit You Have. Positively maintaining more than one type of credit line – such as a car loan and a credit card – shows responsibility and will help your score too.
When getting a loan for a home, one of the factors is your credit score rating. If you have more questions about FICO or your credit score, give me a call at (602) 456-2195 and we’ll discuss it together. I look forward to helping you.
Source: Housing Wire
Skyline Financial Corp. and its loan officers are not credit experts. Always consult a credit specialist for more details.Questions? Contact David Krushinsky Today!