How important is your credit score?

Mortgage and Lending with Guild Mortgage Company


Your credit score will play an important role in obtaining consumer credit or loan financing. In today's lending market the better your credit score, the better your rate. The middle credit score you want to strive for is the magic number 740.  It is also important to mention that while most lenders are requiring a minimum credit score of 620, this score may also limit program availability.  It is always within a consumer's right to apply for credit, despite of what their score may be, for equal opportunity of obtaining new financing.

Here is a look at a typical credit scoring model. The scoring model below was obtained from American Reporting Company. The data used to compile credit scores is based on information reported by creditors to Equifax, Experian, and Transunion. It does not include information about income, race, sex, or religion

35% is based on your payment history.

(Including all accounts)

30% is based on the amount you owe creditors.

(Especially revolving accounts with high balances)

15% is based on how long you have been using credit.

(The longer you have a good payment history, the better)

10% is based on your applications for new credit.

(If you are loading up on credit it may damage your score)

10% is based on your ‘mix' of credit

(Numerous finance company accounts may lower your score)

I feel as a consumer it is important to know what your credit score is, and to make good conscious decisions when obtaining and using credit. Get into a consistent habit of checking your credit profile on an annual basis. This will help in monitoring accounts, and managing potential erroneous information that can get inaccurately reported to credit bureaus.

If you feel there could be an error on your file, I would contact the creditor in question and request an investigation. It is within your rights to dispute erroneous items with the credit bureaus and it is required by law for them to respond within thirty calendar days.  Below you will find the addresses for each bureau:

  EQUIFAX - PO BOX 105873 ATLANTA, GA 30348


  EXPERIAN - PO BOX 2104 ALLEN, TX 75013



Heather Burns

Mortgage Consultant

Wells Fargo Home Mortgage

10900 NE 8th ST

Bellevue, WA  98004

(425) 468-8645 Tel

(206)714-3522 Cell

(866)496-5671 Fax