What is a credit score?
WHAT IS A CREDIT SCORE AND HOW IS IT CALCULATED?
Know your credit score BEFORE you need it. Keep an eye on it using various free apps online like credit karma. You can get a free report once a year from annualcreditreport.com - this will include your report from all 3 credit bureaus.
In the United States, the most commonly used credit scoring models are FICO® Scores and VantageScores. These scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Several factors influence your credit score, including:
Payment History: Your track record of making timely payments on credit accounts.
Late payments- collection accounts- judgements- repossessions- SINK your score.
Call the creditors and getting them paid off will increase your score. If you can’t make a $100 payment landlords are not going to trust you to pay them rent of $2000.
Credit Utilization: The amount of credit you're using compared to your total available credit limits.
Keeping your usage on each account below 50% is good. Keeping it below 25% will significantly increase your score.
Length of Credit History: How long your credit accounts have been established.
Age credit like a fine wine. Don’t close old accounts.
Types of Credit: The various types of credit accounts you have, such as credit cards, loans, and mortgages.
Some Debt can be good! Diversify the type of accounts.
New Credit: The frequency and recency of new credit inquiries and accounts opened.
Don’t apply for every dept store account that is offered to you. Each time you apply it drops your score.
Kelly Catallo, Broker/Owner Cosmopolitan Team @ Realty ONE Group Cosmopolitan Find MORE great tips at CosmopolitanRealEstate.net
