How does a Score breaks down?

1.  PAYMENT HISTORY- What is your track record

2.  Amount Owed-How much is too much

3.  Length of Credit History- How established are you

4.  New Credit- Are you taking out too much debt

5.  Types of Credit Use- Is it a “healthy” risk

35% of your score is based on your payment history.   Having no late payments in your credit report does not mean you will get a “perfect score”

30% of your score is based on the amount you owe on all of your accounts & the different type of accounts, if you are showing a balance or not, how many accounts you have, how much of the total credit line is being used & how much of the installment loan accounts is still owed compared with the original loan.

15% of your score is based on the length of time your credit has been established

10% of your score is based on New Credit, how long has it been since you opened a new account & Recent Inquiries

10% of your score is based on the types of credit in use. The number of various accounts  such as retail accounts, installment loans, mortgages, consumer finance accounts etc.

So no one can give you answers as to why your fico score is what it is, all we can do is suggest and help you improve your score by giving you some options based on working with the credit bureau, our experience in correcting errors on a credit report and suggestions that may help.

THE BIGGEST ISSUE WHEN SHOPPING FOR A LOAN, DO NOT LET EVERYONE RUN YOUR CREDIT!  At Heartland Mortgage, we will run your credit and give you a copy of it so you can shop for the best program. In the beginning stages of looking for a loan, a lender can give you the “best prevailing rate” for you based on the information you are supplying.  If for some reason though when you actually begin the process of the loan, the lender will have to run the credit and if something changes along the way, this may affect the rate you were originally quoted.



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