Credit Score Blues

Mortgage and Lending with Cardinal Financial Company, Limited Partnership NMLS 365858

One of the things that blows away the minds of some of my clients is how their credit scores are lower than they expect.  These are people who have never had a late payment a day in their life.  Yet, by score alone, you'd never think that.  I'm sure there are some of you that have that same issue:  perfect payment history, but not a credit score you'd consider perfect.  Let me explain why.

While late payments and derogatory accounts have an impact on your score, so do many other factors.  Here's a breakdown on how your scores are computed and what you can do to help raise your own credit scores.

  • Payment History accounts for 35% of your score.  Definitely the most impacting aspect of credit scoring.
  • 30% of your score is determined by your balance ratios.  This is the biggest obstacle that most people have.  When your balances are greater  than 50% of your available credit, your scores take a hit.  If you want to have higher scores, make sure you keep your balances as close to zero as possible.
  • The length of your credit history makes up 15% of your score.  The older the account the better the impact to your score.
  • Types of credit account for 10% of your score.  The credit bureaus want to be sure you have a good mix of loans and credit.
  • New credit makes up for the last 10%.  Opening too many new accounts at one time is not good.  Take your time when you acquire new accounts.  Limit credit inquiries.


If you have questions regarding your credit, let me know.  With extensive experience in credit repair, I can help you get your scores where they need to be so you can get that loan you are searching for.


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Comments (5)

John Cunningham
eXp Realty - Phoenix, AZ
Helping Phoenix Sellers and Buyers find each other

Now with many of the lenders going to a 640 FICO it is becoming all the more difficult to borrow. That is why people looking to buy in Farmers Branch Texas need to contact James Jeter.

Oct 28, 2010 11:43 AM
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise - Nampa, ID

Great advice and explanation...I truly don't think a lot of people understand that their credit is so important! 

Oct 28, 2010 11:51 AM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter

John - Thanks for the comment! 

Deborah - Most people don't.  Thanks for stopping by.

Oct 28, 2010 12:52 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Too bad information like this isn't required education at the high school level. Wouldn't we all be in better financial shape?

Oct 28, 2010 12:53 PM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter

Yeah.  I remember my first day of college.  Credit card offers everywhere.  I didn't even own a home but I had a sears and lowes card. 

Oct 28, 2010 01:02 PM