WHAT TO KNOW
Credit scores range between 200 and 850, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
Your
payment history.
Did you pay your credit card bills on time? Bankruptcy filing, liens, and
collection activity also affect your history.
How
much you owe and where.
If you owe a great deal of money on numerous accounts, it can indicate that you
are overextended. However, spreading debt among several accounts can help you
avoid approaching the maximum on any individual credit line.
The
length of your credit history.
In general, the longer an account has been open, the better.
How much new credit you have.
New credit—whether in the form of installment plans or new credit cards—is considered more risky, even if you pay down the debt promptly
Generally, it’s desirable to have more than one type of credit—such as