5 Factors That Decide Your Credit Score
If you are looking to buy your first home in San Diego, you will want to ensure your credit score is as high as possible. Credit scores range between 200 and 800. You want to have a score above 620 to be considered desirable by a lender, and of course, the higher the better. The following five factors will impact your credit score when trying to buy a home in San Diego:
- Your payment history. This is the number one factor as it indicates whether you tend to pay credit card obligations on time.
- How much debt you have. Owing a substantial amount of money might suggest you are over-extended.
- The length of your credit history. The longer your history, generally the better, as it gives a longer time horizon to evaluate your payment history.
- How much new credit you have. New credit is considered more risky even when you pay promptly.
- Your credit mix. Generally, you want to have more than one type of credit — installment loans, credit cards, student loans, and mortgages are different types of credit and the greater your mix, the better.
For more on understanding your credit score, go to www.myfico.com.