|
Credit 101
Credit scores are an important factor in mortgage loans. Higher scores can mean access to better interest rates, but many consumers are unsure about what causes them to receive a certain score.
Your score is determined by five main categories:
- 35% is based on your payment history
- 30% is based on the amount you owe creditors
- 15% is based on how long you’ve been using credit
- 10% is based on your applications for new credit
- 10% is based on your “mix” of credit
The data used to compile credit scores is based on information reported by creditors to Equifax, Experian and Transunion, the three national credit bureaus. It does not include info about income, race, sex, or religion.
|
