5 Things That Influence Your Credit Score

CreditWhen deciding whether or not to buy a home in West Knoxville, there are many things factors that influence your decision. Are you ready to make a long-term commitment to a home? Are you ready to be your own landlord? And, possibly one of the larger factors, do you have the credit and finances to obtain a loan? Take a look below and the 5 things that influence your credit score.

  1. Your payments. Mainly, if you have made of all your payments on time. And, if not, how late were the payments, how frequent were they, and how often did late payments happen. Also, things like bankruptcy, liens, and collection history will all also play a role. Even one late payment can make a ding in your credit score.
  2. How much you owe. Have your overextended yourself? Are all of your credit cards maxed out or close to being maxed out? Or, are you using your credit wisely, and maintaining a good balance on each? How much credit you are using can play a big role in your score. It is good to show that you have multiple accounts with only portion of the balanced used, which you payoff regularly or pay the monthly balance.
  3. The length of your credit history. The longer your have had accounts the better. Opening and frequently closing credit card accounts can look bad and can negatively influence your score. Having longstanding account history that you have managed over a period of years, looks much better than having a bunch of new accounts.
  4. How much new credit you have. New credit accounts are seen as risky. The less you have of them the better.
  5. The type of credit you use. It looks good to have a variety of credit that you use on a regular basis — credit cards, installment loans, and mortgages. It shows you can responsibly manage your credit.

For more information about what influences your credit score, visit http://myfico.com, which offers comprehensive information about how to improve your score, answered to many frequently asked questions, and other important resources. Please let me know if there is any information I can provide for you about buying a home in West Knoxville, feel free to give me a call or send an email to Rick@TheBigOrangePress.Com.