https://www.morty.com/loan-officers/akruti-patel

Akruti Patel - Mortgage Loan Officer, Leander, TX (2026)

09/25/2023

PITI explained.

09/22/2023

So what makes a person more “creditworthy” when it is time to decide on lending? Several factors play a role in your ability to get a loan but the most important ones are:

Payment history (35%)
How often you pay your bills on time every month. From your cell phone and utilities to mortgages and car payments, making sure you don’t miss your deadlines is a critical part of keeping a healthy credit score.

Amount Owed (30%)
The general rule is not to use more than 30% of your credit. However, if you are using a lot of your available credit, this may indicate that you are overextended - and banks can interpret this to mean that you are at a higher risk of defaulting.

Length of Credit History (15%)
How long you have had an open account is also a big factor. You’ve managed to keep an account for several years without going into delinquency? That shows that you’re less likely to be a risky borrower.

Types of credit (10%)
Diversity is key. Having a few different types of credit shows potential lenders that you are able to handle more than one thing at a time. And that increases your credit score.

New Credit (10%)
Thinking about applying for a few credit cards before you go out and purchase a house? Think again. When you apply for a student loan, car loan, or credit card, lenders will do a ‘hard pull’ on your credit. This means that the act of them finding out your credit information causes your credit to take a hit. Too many of these inquiries and you could find yourself just shy of qualifying for things you otherwise would have.