5 Biggest Factors that Impact Your Credit Score?

Real Estate Agent with Re/Max 10 New Lenox Illinois

I love it when my good friend Vincent Redd takes time out to have a conversation with me on how we can collectively help potential Buyers achieve their homeownership goal.  He asked me to share the following credit worthiness tips.  Please know Vincent is awaiting you calling him if you'd like to know your credit score, or what to do to procure financing, or with any financing questions.  His contact information is below...


When buyers decide to make a major financial transaction like a home purchase, their credit score plays a huge role.

The following are 5 of the biggest factors that can affect their score:

Payment History

  • Buyers should have a good history so that lenders can trust them to pay a mortgage. They should continue to pay all bills on time and avoid default.

Amounts Owed

  • Lenders want to see that if buyers have borrowed money, that they're responsible to pay it back. The less that buyers owe the better, but as long as they can prove they can manage, they should be OK.

Hard Inquiries

  • While it’s good to collect interest rate quotes from lenders, it can take a toll on a credit score because the lender will pull a hard inquiry. Buyers should stretch out their inquiries and avoid too many.

Too much credit

  • Yes, it’s important to use credit, but having a balance higher than 30% of the credit line can hurt the score. Buyers should make a habit of keeping the balance low.

Not using credit

  • Buyers might be hesitant to take on the responsibility of credit, but avoiding it altogether will negatively impact their score. Buyers should use their credit to build their history and increase their score.

If buyers feel that their score is inadequate, they should take more time to develop a stronger score. As long as they avoid these common pitfalls, they can score some of the best mortgage rates available.

Have a great week!


Vincent Redd
Senior Mortgage Consultant

Office:(630) 748-7473

Efax: (773)  435-6468

Cell: (773) 255-1698


Individual  NMLS#233273

Office          NMLS#222982


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