Your credit allows you to obtain a mortgage and helps you find a great apartment to rent. Although it can seem overwhelming to understand, we are here to educate you on credit factors and guide you through the process. Below you will find some helpful resources.
Credit Reporting Agencies
Lenders use FICO scores to help measure the risk of default by taking into account various factors in a person’s financial history. They also help determine interest rates and credit limits. The percentages below are approximate. FICO scores generally range from 300 – 850 with scores at the higher end of the scale reflect a better credit rating.
- 35%: payment history
- 30%: debt burden
- 15%: length of credit history
- 10%: types of credit used (installment, revolving, consumer finance, mortgage)
- 10%: recent searches for credit: hard credit inquiries
Visit MyFico.com to learn how to improve your credit score.