Know Your Credit Score
Tuesday, July 27, 2010 | Comments Off
Whether you’re in the market for a new home, or applying for a loan, before you start looking at neighborhoods, you need to look at something else-your credit score. Here are some of the key terms you should know:
Payment History-Your payment history is a significant factor in determining your credit score. A history of late payments on current and past accounts is likely to have a nigative impact on your score.
Amounts Owed-What you owe counts significantly in the calculation of your credit score. Maintaining large balances on your credit cards may be a signal to lenders that you have accrued more debt than you can handle.
Length of Credit History-A portion of your score is based on how long you’ve had established credit. A longer credit history can help earn you a better standing with creditor grantors and lenders.
New Credit Requests-Consider ways to manage new credit wisely. Applying for many different types of credit in a short period of time can take a toll on your score.
Credit Diversity-Mix it up. Having a combination of account types including installment, revolving and mortgage is a good way to help diversify your credit.
