10% credit mix – Lenders like to see that you can handle a variety of debt including credit cards (revolving debt) and installment debt (mortgage loans, personal loans, car loans, etc.).Don’t close old accounts unless it’s absolutely necessary as this is an easy way to increase your credit score. The ‘older’ your credit is, the better it is for your credit score. 15% credit length – The age of your credit affects your credit score too.Ideally, you should keep your credit utilization rate lower than 30% for the best results. For example, if you have a $1,000 credit line and you have $500 outstanding, you have a 50% credit utilization rate. 30% credit utilization – Your credit utilization is a comparison of your total outstanding debt compared to your credit lines.Any payment made 30 days or more past the due date hurts your credit score, whereas a timely payment history can greatly improve your credit score. 35% payment history – Your payment history tracks how well you make your payments.Mortgage credit scores put a lot of emphasis on payment history and credit utilization with other factors playing a role too. How are Mortgage Credit Scores Calculated? The credit scores range from 300 – 850 with 850 being the highest score. ![]() ![]() Over 90% of mortgage lenders use this credit scoring model from all three credit bureaus – Trans Union, Equifax, and Experian. Your mortgage credit score is likely FICO, a score created by Fair Isaac and Company. Mortgage lenders use a different credit scoring model than consumers have access to, which means they may see a different credit score than what you expect. If you’ve ever applied for a mortgage only to find out that the credit score the lender sees is much different than what you’ve found pulling your credit scores from Experian or your credit card services, you aren’t alone.
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