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5 Factors That Decide Your Credit Score
Credit scores range between 200
and 800. Scores above 620 are considered desirable for obtaining a
mortgage. These factors will affect your score
Your payment history.
Whether you paid credit card obligations on time
How much you owe. Owing a
great deal of money on numerous accounts can indicate that you are
overextended
The length of your credit
history. In general, the longer the better
How much new credit you have.
New credit, either installment payments or new credit cards, are
considered more risky, even if you pay promptly
The types of credit you use.
Generally, it’s desirable to have more than one type of
credit—installment loans, credit cards, and a mortgage, for example
For more on
evaluating and understanding your credit score, go to
http://www.myfico.com
Reprinted from REALTOR Magazine Online by
permission of the National Association of Realtors
Copyright 2005 All Rights Reserved
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