05/20/2024
Here's how credit scores work. In a simple graphic like this, it's easy to see what matters most.
1. Payment History (35%): This is the record of your payments on credit accounts, including credit accounts, mortgages, and other loans. On-time payments positively impact your score, while late payments, defaults, or bankruptcies can have a negative effect.
2. Credit Utilization (30%): This is the ratio of your current card balances to your credit limits. A lower ratio is generally seen as more favorable and can positively impact your score.
3. Length of Credit History (15%): This considers how long your credit accounts have been established. A longer credit history can be seen as more stable and may positively impact your score.
4. Types of Credit in Use (10%): This takes into account the various types of credit accounts you have, such as credit accounts, mortgages, and installment loans. A mix of different types of credit can be viewed positively.
5. New Credit (10%): This includes recent inquiries for new credit and the number of recently opened credit accounts. Multiple recent inquiries or new accounts may hurt your score.
Please reach out with any questions and for your no cost, no obligation preapproval. Marc Poncher, Destiny Mortgage Group 847–7 74–9503 www.getyourfixedrate.com
Chicago fixed rate mortgage.
