Credit Score Informational Page

What makes up your credit score?

How inquiries are factored into FICO scores.

There are five types of information used to calculate a FICO score at any given point in time. Each type of information counts as a percentage of a total FICO score:

35% = Payment history - how you’ve paid your bills?
30% = Capacity – how many cards do you have, and how many have balances? Are they maxed out or close to it?
15% = Length of credit – how long have you been using credit?
10% = Accumulation of debt. How many accounts have you opened in the past .
12-19 months? How many creditors have pulled your credit?
10% = Mix of credit – Installment (raises scores), Revolving (lowers scores). Finance companies lower scores quickly.

Grading Your Score

680/850=A credit

620/680=B credit

580/620=C credit

500/580=D credit

What does your credit score look like?

720 and up              Excellent Scores: You get the best rates and terms

700-719                     Great Score: Very favorable rates and terms

680-699                     Good Score: You should not have a problem, don't expect the best deal

660-679                     OK Score: Be ready to accept a interest higher rate and terms

640-659                     Borderline Score: OK with higher down-payment if everything else is strong

620-639                     Weak Score: Expect much higher requirements and problems

600-619                     Bad Score: Try FHA financing or a special program

Below 600                Forget it: It's time to repair the credit

Checking your credit reports regularly to be sure they are accurate and error-free is a good idea. In fact, maintaining accurate credit reports is a part of good credit management, which can help safeguard or even improve your FICO scores.

Credit Card Hints:

If you have three credit cards with a $10,000 limit on each and a $10,000, on one card, it is better to transfer a third of the balance to each of the cards. When you exceed 50% of your credit limit on any card the credit scoring companies see that as a negative and will adjust your score accordingly so it's better to spread the debt around to the cards you have. That's not to say that you should go out and apply for more cards to utilize this method. Getting a new card will also negatively impact you score.

If you plan to financing a house in today’s market, you will need to know is the status of your credit. Real Estate purchases that require financing depends greatly on how good your credit score fairs. Your loan officer can inform you of what your mortgage payment will be, (PITI) based on your good credit but keep in mind, if your score is suffering, the available interest rate could range much higher then the prime rate in turn raising the monthly payment.

Real Estate financing standards continue to change and buyers credit scores are required to be much higher in today’s market. With foreclosures on the rise and real estate finance companies in such disarray, new loans are only given to buyers who qualify and your credit score plays a large part of the process.

Jay A Hendrick
William Davis Realty

8856 Coleman Blvd

Frisco, Texas 75034
Cell: 214-336-7088
Voice/Fax: 972-248-5991
E-mail: jay@realestatedal.com

Website: www.RealEstateDal.com

Website: www.ForeclosuresFrisco.com
Member: NAR TAR CCAR ABR SFR TAHS

Realtor®

Real Estate Agents in Frisco Tx

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We serve Allen, McKinney, Prosper, Frisco, Plano, Lewisville, The Colony, Sachse, Wylie, Murphy, Richardson, Carrollton, Flower Mound, Coppell, along with many other areas around DFW.

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