What is a Credit Score? Should I care about it? What can I buy?

Real Estate Agent with GaRealtyGroup | 2ShortSaleGuys GA - 315107

By definition, a credit score is a number based on a statistical analysis of a person's credit files, that in theory represents the creditworthiness of that person, which is the likelihood that people will pay their bills. A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, TransUnion, and Equifax. Income is not considered by the major credit bureaus when calculating a credit score.


It is a fact that credit score plays a vital role in obtaining a favorable home mortgage loan. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and credit limits. Literally, credit score is a fundamental part of your credit stability. What does a good credit score do for you?


Here are some of the positive effects of having a good credit score:

  • People can get loans faster

    • Scores can be delivered almost instantaneously, helping lenders speed up loan approvals.

  • Credit decisions are fairer

    • Using credit scoring, lenders can focus only on the facts related to credit risk, rather than their personal feelings.

  • Credit “mistakes” count for less

    • If you have had poor credit performance in the past, credit scoring doesn't let that haunt you forever.

  • More credit available

    • Lenders who use credit scoring can approve more loans, because credit scoring gives them more precise information on which to base credit decisions.

  • Credit rates are lower overall

    • Knowing and improving your score can also lead to more favorable interest rates.


Credit scores is also well known as “FICO score” since most of the credit bureau scores uses a software based from FICO (Fair Isaac and Company).  FICO Score is calculated by a mathematical equation that evaluates many types of information from your credit report, at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports, the FICO Score estimates your level of future credit risk.

35% of your Credit Score is devoted to Payment History. This would include missed payments, collections, bankruptcies and the like. The older the information the less of an impact on your overall score.

30% of your Credit Score is based on Utilization. This is the amount of credit you have in used as compared to your available credit. The recommendations point to less than 10% of your available credit be utilized.

15% of your Credit Score is impacted by your Credit History. Effectively how long you’ve had accounts open and obviously takes some time to build.

10% of your Credit Score is based on Inquiries. If you apply for various forms of credit and then don’t get that credit it will impact you negatively. Checking your own credit does not impact this number.

10% of your Credit Score is determined by Types of Credit. This would be different forms of credit such as mortgages, auto loans, revolving credit and installments.

What’s a Good Credit Score?


FICO credit scores range from 300 to 850.  A report from myFICO shows the impact your credit score can have on your potential mortgage rate. To give you a clear view of what a good credit score’s impact on your loan application, here is an example of a loan calculator based on a $100,000 loan principal amount, 30-year fixed term in the State of Georgia.  


FICO Score


Monthly Payment

Total Interest Paid

760 - 850




700 - 759




680 - 699




660 - 679




640 - 659




620 - 639




If you are planning to apply for a home loan and is unsure of your credit score. You can visit this website for more information, clickhere. You may also get in touch with us 2ShortSaleGuys and we guarantee you that we have the best tools to help and assist you evaluate your credit score.  We have featured partners waiting to assist you with your financial needs.


We at2ShortSaleGuys can provide you the assistance you need. We would love to make homes in North Georgia available to you for viewing.  You can click HERE for ALL the homes in Georgia and available for viewing today.  Contact us today by calling us at 678-279-5977 or you can fill out your information HEREand a member of our team will call you as quickly as we can.


Should you have a home in North Georgia and wish to have a member of our team contact you for a hassle FREE consultation about your homes worth, please click HERE for more information.  A member of our team will evaluate your home and give you a in home consultation and show you how 2ShortSaleGuys are so successful in getting homes SOLD!  You may also contact us by clickingHERE or at 678-279-5535 to speak to a team member quicker!


Bill Bythewood and Nakia Brooks have collectively been selling real estate for over 15 years.  They have a team of associates that know the short sale process inside and out!  However, Short Sales aren’t the only thing these two sell.  In 2013, they have sold $30,000 townhomes and sold $400,000 lake homes; they have a vast knowledge of all things real estate.  Call today to speak with Bill or Nakia about their experience and how they can sell your home. 678-279-5535


Posted by


Nakia Brooks, REALTOR ®



GA Realty Group | 2ShortSaleGuys
Keller Williams Realty – Lanier Partners


To view many great homes in North Georgia available today, CLICK HERE to start your search NOW!!!


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Nakia Brooks

Selling GA, One yard at a time!
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