Understanding credit score!

Understanding credit score!

Author: Victor Matos | | Categories: Bad Credit Mortgage , Credit Rebuilding , Debt Consolidation , Dental Plans , Disability Insurance , Good Credit Mortgage , Health Plans , Life Insurance Agent , Mortgage Agent , Mortgage Insurance , Mortgage Refinance , Travel Insurance

Most lenders require a beacon score of 650 points to qualify for a regular bank mortgage.

Here’s a little summary to show you how credit scores are compiled:

  • These percentages are based on the importance of the 5 categories for the general population. For particular groups - for example, people who have not been using credit long, or new immigrants - the importance of these categories may be different.
  • Payment History- Account payment information, arrears, collections, length of delinquency, Amounts Owed – Are minimum payments being made, under or over the limit
  • Length of Credit History – usually Banks ask for two years of minimum credit history
  • New Credit – number of new inquiries (too many can represent struggled finances)
  • Types of Credit Used – Items such as credit cards, loans, lines of credit. Secured items such as mortgages may not get reported unless they fall delinquent.