150 Moving Parts to Credit Score

Your credit score has upwards of 150 different components.  It is a mathematical model and though it is considered a “black box,” with few of the actual details made public, we do know the most common elements:

• Length of time at your current residence and whether you rent or own.  Because of this, often times we list the “permanent” residence for students as their parents’ home for the entire term of their “school” experience.
• The length of time at your current job and the type of job you hold.  This is why deleting old, outdated or inaccurate information about this might be to your advantage.
• How much debt you currently have and what KINDS of debt you have.  For this reason we spend an enormous amount of time with folks reflecting on WHICH credit cards should be paid down, or paid off.  We’ve seen $300 paid to a Best Buy Credit Card improve someone’s score by 50 points.  That $300 paid on a Bank of America account would not make near that difference.  In addition, if your only open credit is your mortgage – you will not have as good a score.

If you have questions about increasing your credit score so that you can qualify for a mortgage loan, call Steve and Eleanor Thorne,  Mortgage Banker in Cary 919-649-5058.