Mortgage Market Talk

Your FICO score is a main determinant of whether you will be approved to purchase a home or not.

What is a FICO score?

A FICO score is a calculation derived from different data in your credit report that determines your risk in receiving credit.

The main categories that are reflected in a FICO score are:

  1. Payment history
  2. Amounts owed
  3. Length of credit history
  4. New credit
  5. Types of credit used

Each of these five categories provide important information that help determine a FICO score.

Once you understand what the main categories are in determining your FICO score, the next step is managing your credit so you can improve your score and eliminate debt.

Here are tips to fix your credit score by category and maintain good credit:

Payment History

  • Pay your bills on time

In order to build a strong credit score, you need to be current on all bills…

View original post 469 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s