Today I'm going to take a brief look at credit score factors.  As hard money lenders, credit did not used to make a big difference.  Today things have changed, and even in the hard money world, credit is playing a part in lending decisions.

Most people are in the dark when it comes to the factors that determine their credit score.  Here is a basic rundown on credit score factors:

35% of your credit score comes from payment history.  Late payments, collections, charge offs, repossessions, foreclosures, tax liens, bankruptcies and judgements all fall under this category.

30% of your credit score comes from accounts owed.  Credit cards, mortgage loans, auto loans, lines of credit and installment loans all factor into this area.

15% of your credit score comes from the length of credit history, how long your accounts have been open in other words.

10% comes from new credit.  This includes credit inquiries, both soft and hard.

Finally, the last 10% comes from types of credit used.  A mortgage loan, auto loan, credit cards, etc.  The mix of credit used.

IF you would like more information, take a look at our in-depth write up of credit score factors.