Posts Tagged ‘credit score’

5 Important Factors that Decide Your Credit Score

credit report sign

Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage.

The following factors affect your score:

1. Your payment history.

Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe.

If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history.

In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have.

New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use.

Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

If you feel you need some help with your credit score or would like to fix your credit report, it is best to consult with a specialist.  Find out your options before it’s too late.


Share the wealth: Bookmark and Share

How a Foreclosure or Bankrupty Impacts Your Credit Score

credit report clipboard

Recently, Fair Isaac, which developed FICO scores, pulled back the curtain a bit, revealing some estimates of point-score declines following mortgage delinquency problems.

Here are the average hit your credit will take:

  • 30 days late: 40 – 110 points
  • 90 days late: 70 – 135 points
  • Foreclosure, short sale or deed-in-lieu: 85 – 160
  • Bankruptcy: 130 – 240

“The lending industry tends to regard an account differently when it has become 90 or more days late,” said Craig Watts, a spokesman for Fair Isaac. “The likelihood that consumers will resume paying their overdue obligations drops off significantly after the delinquencies have reached 90 days.”

One reason credit companies were so closed-mouthed is that they often can’t definitively state how much each delinquencies will affect scores because there are too many variables.

Some borrowers will fall much more steeply than others for the same payment problem, according to Maxine Sweet, vice president for public education at Experian, one of the nation’s main credit bureaus.

“If you picture someone who has just one mortgage and one other credit account versus a mature credit user like me with 15 accounts, if they miss one payment that would impact their scores a lot more,” she said. “For me, one missed payment would just be a blip.”

Source: Les Christie, CNNMoney.com



Share the wealth: Bookmark and Share

Help! Fix my credit! (Video)

Backyard Wealth Video on credit repair


Click the screen above to watch the video.

One of the most common requests we’ve been receiving recently is about fixing or repairing credit scores.

We can help.  Go to www.BackyardWealthHomeHelpCenter.com for more information.


Check out more helpful videos.  Visit the Backyard Wealth Channel.


Share the wealth: Bookmark and Share