Credit Scores Heres The Break Down

Dated: October 27 2017

Views: 117

Credit Scores? Here’s The Break Down


If you’re in the pre-mortgage application phase, you’ve probably heard the term ‘credit check’ thrown around. You know how credit cards work, but maybe you’re not so sure how credit scores do. Have no fear, this is a broken-down explanation of everything you need to know about credit scores.

What is a Credit Score?

There’s a very important thing you need to understand when applying for a mortgage.  To your surprise, there are three types of credit scores: general credit, true credit, and your FICO score. When an underwriter decides the fate of your mortgage approval, they evaluate your FICO score. This type of score, created by the Fair Isaac Corporation, differs from others because they more accurately portray credit worthiness. FICO scores evaluate timeliness on credit payments, current level of debt, length of credit history, and all existing credit accounts.

What’s A ‘Good’ FICO score?

FICO scores are calculated into different categories. Payment history makes up about 35%, accounts owned is 30%, length of credit history is 15%, new credit is 10% and credit mix is 10%. Most FICO scores range between 300-850. Anything above 650 indicates a good credit history. Individuals with credit scores below 650 often report they found obtaining financial assistance difficult when applying for a home loan.

How To Keep/ Improve a FICO Score

A way to keep/improve your FICO score is know what your score is. Get a credit report every 12 months, so you stay up to date on your score. Another way to improve your score is to set up payment reminders on your phone—that way you know when your deadlines are sneaking up.

Most importantly, don’t be afraid to ask for advice. We will be happy to share our expertise and insight with you to help figure out the best option for financing your new home.

For More Info Visit: http://www.bondstreetmortgage.com

Blog author image

Jessica Rojas

Jessica Rojas is an extremely dedicated and committed real estate agent who has been working in the Real Estate field since 1997. She became a licensed real estate agent in 2009 as a sales associate ....

Want to Advertise on this Site?

Latest Blog Posts

Selling Your Home These Easy Upgrades Can Up Your Curb Appeal

Curb appeal is extremely important when you’re selling a home—and it’s especially important now, in the midst of the pandemic, when the exterior of your home might be the only area

Read More

This Fall Cozy Is The New Black In Home Decor

Autumn is here! And while fall is always a cozy time, this year, coziness has officially emerged as one of the biggest interior design trends of the autumn season. A recent article

Read More

6 Lessons In Real Estate That Everyone Should Know

Lesson #1 A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she

Read More

Top Reasons To Sell Your Home During The Holidays

Between holiday travel, holiday parties, and hosting out-of-town guests, the holidays can be a busy time of year. And if you’re selling your home, you might be tempted to take your property

Read More