House Buying Fears!

Worried about your credit score.

This can be very scary, but don’t worry. You are not alone. I hear every day that someone is concerned that they will not get the rate they want, or even worse. They will get turned down for a loan. If this is you, save this article! This will tell you everything you need to know about getting your credit up to where it belongs. To do this, we need to understand the 5 factors of credit:badcredit

  • 35% of your credit is based off of your Payment History
  • 15% of your credit is based off of your Length of Credit History – How long have you had a line of credit open.
  • 10% is for your new credit inquiries
  • 10% is based off of the different types of credit. (Auto, Student Loans, Credit Cards, Mortgage)
  • 30% is based off of your amount owed on your credit card.

I made Amount Owed last because it is the one that most people are not aware of. To break this down, if you have a credit card with a max of $1000, and you only have $500 spent on it, you may think you’re looking good, when in reality this is hurting your score. You need to keep 70% of your credit card unused. So of that $1000 card, you can use $300 before it will affect your score the 30%.

By being aware of these 5 items, and a little bit of time, your credit will be going up and your worries gone!


    Gershman Mortgage , Iowa