5 Factors That Influence Your Credit Score

Each of the three credit bureaus calculates a credit score by crunching a lot of data received from your creditors about you. Here are some of the elements that go into this important number.

1. The length of time you have had established credit accounts.

2. How you repay your debts - whether and how often you have been 30, 60, 90 days or more late with a payment.

3. Any judgments, foreclosures, or write offs.

4. The amount of your outstanding balances versus the amount of available credit you have.

5. Recent inquiries into your credit which can indicate a search for new credit accounts.

Keep in mind that many of the companies you do business with are considered creditors and may report information about you to the credit bureaus. These can include the banks or lenders that hold your mortgage, car loan, student loan, and credit cards, but also your cell phone provider, utility company, insurance company, and any stores for which you have a store card or credit account. Be sure to pay all bills in full and on time to avoid damage to your credit score.

For more on evaluating and understanding your credit score, go to http://www.myfico.com.

Additional Information:
Understanding Credit Scoring
Mortgage Application Checklist
What To Do If You Are Not Approved For A Mortgage Loan

Learn more in the Mortgage Education Center.

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