when you do end up selling the property.
ALL ABOUT CREDIT SCORES
As I briefly mentioned, credit scores can play an important role in getting financing and the rates you’ll need to pay. I want to talk about what makes up a credit score so you’ll know what you need to do, should you want to improve it. First, your score is a number that tells lenders how likely you are to pay back the money. When you have a higher score, you get better rates, which leads to long-term savings and more money in your pocket. Credit scores are often based on the FICO scoring model. They can range from 300 to 850:
• Bad credit: 300-600 • Poor credit: 600-649 • Fair credit: 650-699 • Good credit: 700-749 • Excellent credit: 750-850
The determining factors and how much weight they carry vary between credit agencies (TransUnion, Experian, and Equifax). However, the following five are the major contributors to your score:
• Payment history: 35% • Outstanding balances: 30% • Length of credit history: 15%
• Types of accounts: 10% • Credit inquiries: 10%
By knowing your credit score, you’ll have a clearer picture of your 17
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