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Understanding your Credit Score_ - City Creek Mortgage

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Understanding your Credit Score!

Your credit score can impact you in a number of different ways. It will affect the interest rate you pay on your mortgage, your
insurance premiums, as well as the cost of consumer loans. Having a clear understanding of credit scores and knowing how to
achieve the highest rating possible can help save you tens of thousands of dollars in the long run.

A credit score is a number that helps lenders determine how likely you are to make your proposed monthly
payments on time.

A FICO score on a mortgage credit report will range from 300-850, and is made up of the following:

•	   35% of the score is based on Payment History
     a. This considers past due accounts, collections, judgments, bankruptcies, etc.
     b. The more recent any adverse credit is, the greater the impact to the score
     c. The number of accounts that have been paid as agreed
                                                                                                     10%
•	   30% of the score is based on the Amounts Owed                                                                   35%
     a. The number of accounts with balances
     b. The proration of balances to total credit limit of revolving accounts               15%
     c. The total amount owing on specific accounts
•	   15% of the score is based on the Length of Credit History                                                      10%
     a. Time since accounts opened and most recently used                                            30%
•	   10% of the score is based on New Credit and Inquiries
     a. The number of recently opened accounts and number of inquiries
        of your credit
•	   10% of the score is based on the Types of Credit Used
     a. The number of various types of accounts (revolving, mortgage, installment, etc)
                                                                                                       Payment History - 35%

Credit scores change moment by moment as balances and other information is updated             New Credit and Inquiries - 10%
to the credit bureaus. By understanding the factors that determine your score, you can
                                                                                                Length of Credit History - 15%
take specific actions that will help ensure the highest possible score. For a free credit
review, call or e-mail me. I will help ensure you are in the best situation possible when
                                                                                                        Amounts Owed - 30%
the time comes to purchase your next home.
                                                                                                   Types of Credit Used - 10%




                                                                                               Mike Roberts
                                                            City Creek Mortgage | President/Mortgage Planner
                                                                    801.501.7950 | mike@citycreekmortgage.com
                                                                                    www.citycreekmortgage.com
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posted:2/10/2013
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