Key Determinants of Your Credit Score
Credit scores range from 200 to 800, with scores above 620 deemed favorable for mortgage approval. Several factors influence your score:
-
Payment History: Timely payment of credit card obligations significantly impacts your score.
-
Debt Load: Owning substantial amounts on various accounts may signal overextension, potentially affecting your score.
-
Credit History Length: Generally, a longer credit history is advantageous for your score.
-
New Credit: Acquiring new credit, be it installment payments or credit cards, is perceived as riskier, even with prompt payments.
-
Credit Mix: A diverse credit portfolio, including installment loans, credit cards, and a mortgage, is typically viewed positively.
