Certain types of debt can increase your credit score — but overborrowing can hurt you. When you’re shopping for a mortgage, your credit score is a really big deal; it can make or break your mortgage approval and ultimately determine whether you get that new home your longing for or not. But before you analyze your credit score, it’s important to look at how your existing debt affects that score. First of all, debt comes in two types: secured and unsecured. When you borrow money to buy a home, the bank can (obviously) take back the house to recoup its (2 comments)