| A credit score is determined by the following factors: | | | | is the subprime area) for loaning money. The closer |
| 1) Payment History - 35% | | | | you are to the mid 700's the better off that your credit |
| 2) Length of Credit History - 15% | | | | rating will be since this is the desired area for lending |
| 3) Types of Credit Used - 10% | | | | and obtaining the best interest rate. If you don't think |
| 4) Amounts Owed - 30% | | | | that is important, how about a savings of $90,000 over |
| 5) New Credit - 10% | | | | the lifetime of a 30 year term mortgage? This is all |
| The single biggest factor in calculating your credit | | | | because of a better credit score. You don't need an |
| score is paying off your bills on time. If you have | | | | 850 to qualify either. Most lenders look at the range |
| delinquent accounts that went unpaid for a significant | | | | from 720 - 850 as being good risks, so you don't have |
| length of time also go into the calculation. When at all | | | | to be perfect here. |
| possible, pay off the credit card balance on time. | | | | Remember, the credit score is essentially a snapshot |
| Better yet, have it paid 4 - 5 days early to avoid any | | | | of your credit report which gives creditors instant |
| problem with the mail service or online problem. | | | | information about your financial acuity. It can be the |
| The credit scores range from 300 on the low end up | | | | main reason tha that you don't get the desired loan. By |
| to 850 maximum on the current FICO system. The | | | | following a prudent financial plan, you can raise the |
| number 620 is the cut off for risk assessment, with | | | | credit score into the desired range and put your |
| anything below that number considered a bad risk (this | | | | finances in good hands. |