Have you wondered about what affects your credit score and what you can do to improve it? Here's a simplified guide to how your personal finances impact your score.
35% of your score is based on your payment history. Recent late payments impact your score more than late payments further back in time.
30% of your score is based on the balances of your credit cards. The closer you are to maxing out your cards the lower the score in this area.
15% of your score is based on the length of your credit history. The longer you've had a credit history, the more favorable the impact will be on your score.
10% of your score is based on the type of credit. Mortgages are more favorably weighed than credit cards.
10% is based on new credit. It's best not to apply for several credit cards at one time. Too many inquiries can also lower your score. As I mentioned above this is a simplified guide to your score. There are 3 credit scoring companies and each use their own scoring system, but your score from all of these companies should all be fairly consistent. If not, read each report thoroughly and try determine where the discrepancies are and work with the credit company to resolve any issues.
Lisa Ryan, Your Princeton and Montgomery Real Estate Specialist
Disclaimer: The opinions expressed on this real estate blog by The Activerain Network and it's members and those providing comments are theirs alone, and do not reflect the opinions of Lisa Ryan and Henderson Sotheby's International Realty. Lisa Ryan and Henderson Sotheby's International Realty are not responsible for the accuracy or content provided by The Community.
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Serving Princeton Boro, Princeton Township, West Windsor, Montgomery Township, Hillsborough, Hopewell Township, Bridgewater, Lawrenceville, Franklin Township, East Windsor, Kingston, and parts of Middlesex County.
Lisa Ryan, REALTOR®
Henderson Sotheby's International Realty
34 Chambers Street, Princeton NJ 08542
908.420.5706 (C) 609.924.1000 ext.111 (O)
www.LisaRyanRealtorNJ.com
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