CREDIT SCORE
Your credit score, also known as FICO score, is what lenders use to predict how likely a borrower is to repay a loan. It is a number that reflects your credit risk level, typically with a higher number indicating lower risk. Here are the main factors that influence your score:
Payment History accounts for a third of the score. Paying your bills on time is essential to attaining a high score.
Current Debt. Almost another third is determined by how much you owe. The key is to keep balances low on unsecured debt.
Length of Credit. The longer you have had credit and handled it well the higher your score. This accounts for about 15% of your score.
Credit Applications. Applying for several credit accounts in a short period suggests that you may be getting in over your head, this can negatively impact your score. This accounts for about 10% of your score.
Jim Forsyth. College Realty Inc. GMAC Real Estate. 14767 Bear Valley Road, Hesperia, CA, 92345