Credit Rating And Mortgages

You could even to the fact that you have too much credit available. But what about your credit score? A report of the expert analysis of Fair Isaac recently broke credit rating in five categories and evaluate their importance in the final grade. The most important thing was how he paid the bills in the past with greater emphasis on recent activity. Of course, pay all your bills on time is good, consistently paying late is bad. Having accounts that were sent to collection agencies is even worse, though nowhere near as bad as declaring bankruptcy. Paying your bills timely and consistent manner contributed to 35 percent of the score. Next most important was the amount of money you owe and the amount of available credit at your disposal.

The assessment of outstanding debt fell into several categories, including credit cards, car loans, mortgages, home equity lines, and so on. Also the consideration given was the total amount of available credit. If a customer has 10 credit cards that each have $ 10,000 credit limit, which amounts to $ 100,000 in available credit. In general, people that have a large amount of credit available tend to use it. This makes them a less attractive credit risk. This equates to 30 per cent of the total credit score. They also influence credit scores is the length of credit history (15 percent). The longer a customer has had credit? especially if the same financial institution? more points they receive. The mix of credit contributes 10 percent of the credit score.

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