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What Affects Your Credit Score?

Blog by Tomi (Tomyal Emptage) | January 30th, 2012

5 Credit Factors
1. Payment History 35% Impact- Paying debt on time and in full has the greatest positive impact on your credit score.  

2.  Outstanding Credit Card Balances 30% Impact- This factor marks the ratio between outstanding balance and available credit.  Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit 2-3 months prior to trying to purchase a home.

3.  Credit History 15% Impact- This portion of the credit score indicates the length of time since a particular credit line was established.

4.  Type of Credit 10% Impact-  A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.  There are also others types available to help build credit like secured credit cards and credit builder loans.  

5.  Inquires 10% Impact- Tis percentage of the credit score quantifies the number of inquiries made on the consumer's credit within a twelve month period.
 Hard inquiry can cost from three to fifteen points on a credit score depending on the amount of points someone has left in this factor.  

If you are considering purchasing a home in the near future knowing what your credit score is and what you might need to do to be ready to buy a home is critical.  
Call me and I will help you contact a professional that can help you with getting ready.

All information is not guaranteed.  Please note that I am not a credit counselor or credit professional.  

Information has been provided by 

Karen Moon/Sr. Loan Officer


Connie Sims-Crow
Andorra Credit Repair Corporation

Please seek the advise of a credit professional.