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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
• 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%
City Creek Mortgage | President/Mortgage Planner
801.501.7950 | firstname.lastname@example.org
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