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.