4. Types of Credit - 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.
5. Inquiries - 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer's credit within a six month period. Each hard inquiry can cost from 2 to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten.
1.Payment History - 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older times.
2. Amounts Owed - 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
3. Length of Credit History - 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.
DO continue making your mortgage or rent payment (on time)
DO stay current on all existing accounts
DO keep working at your current employer
DO keep your same insurance company
DO continue living at your current residence
DO continue to use your credit as normal
DO call us if you have any questions
DO NOT make any employment or income changes
DO NOT make any major purchases (car, boat, jewelry, fur, etc.)
DO NOT apply for new credit (even if you are pre-approved)
DO NOT open any new credit card
DO NOT transfer any balances from one account to another
DO NOT pay charged off balances without prior discussion with us
DO NOT pay collection accounts without prior discussion with us
DO NOT buy any furniture
DO NOT close any credit accounts
DO NOT change bank accounts
DO NOT max out or go over limit on any credit card accounts
DO NOT consolidate your debt into 1 or 2 credit cards
DO NOT take out a new loan
DO NOT start any home improvement projects
DO NOT finance any elective medical procedures
DO NOT open a new cellular phone account
DO NOT join a new fitness club
DO NOT pay off any loans or credit cards without prior discussion with us