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When buying a home your credit means everything. A prospective lender wants to see how you will handle credit for buying a home and the only way to find that out is to see how you have handled your credit in the past. There are five factors that make up your credit score. Miss any of them and you don't get the points for that section. For example:
Factor
Percentage of Possible Points
MaximumPoints Earned
Accumulation
1.How You Pay Your Bills
35%
192.5
492.5
2. Revolving Balances
30%
165
657.5
3. Length of Credit History
15%
82.5
740
4. Mix of Credit
10%
55
795
5. Credit Inquiries
10%
55
850
As you can see each one of these factors can either add or take away points to your credit score. Just as they can be positive they also have negative affects such as; late payments, no credit cards, no credit at all, old credit but no new credit to offset the bad debt, to many inquiries, high credit balances.
Hope this answers your question and you are able to see how important your credit is when buying a home.
What else can I help you with?
Can collections hurt your credit score?
Yes, collections can hurt your credit score. When a debt is sent to collections, it indicates that you have not paid it as agreed, which can lower your credit score.
Does bankruptsy hurt your credit score?
OF Course it does! IF you just got bankrupt it does hurt your credit score really badly!
Do medical bills on credit report hurt credit score?
yes they do, they impact your score greatly
When should you close unused credit cards and will this hurt or help your credit score?
Usually closing accounts will hurt your score because if you have debt on other cards, your debt to available credit ratio will rise and it can ding your credit score.
How does a company running a credit report hurt your credit score?
Too many inquires on your credit report can hurt your score since it may appear that you are applying for too much credit at once.
Can collections hurt your credit score?
Yes, collections can hurt your credit score. When a debt is sent to collections, it indicates that you have not paid it as agreed, which can lower your credit score.
Does bankruptsy hurt your credit score?
OF Course it does! IF you just got bankrupt it does hurt your credit score really badly!
Do medical bills on credit report hurt credit score?
yes they do, they impact your score greatly
When should you close unused credit cards and will this hurt or help your credit score?
Usually closing accounts will hurt your score because if you have debt on other cards, your debt to available credit ratio will rise and it can ding your credit score.
How does a company running a credit report hurt your credit score?
Too many inquires on your credit report can hurt your score since it may appear that you are applying for too much credit at once.
Does it hurt your credit score when you have a credit report service that allows you to check your credit score as much as you want?
It only hurts your credit score when someone else pulls your credit report.
Does it hurt your credit score to apply for a credit card then not accept it?
yes
Does opening a credit card hurt your credit score?
Actually, it does. It uses the available credit you have so when that goes down the credit score does too.
Does applying for school loans hurt your credit?
It should not hurt your credit score unless you don't pay.
Could having an Equity Line of Credit possibly hurt your Credit Bureau Beacon score?
Definitely, your credit score isn
Do mortgage inquiries hurt credit score?
yes
Can having too many credit cards hurt your credit score?
Yes, having too many credit cards can hurt your credit score because it can lead to higher overall debt levels and lower average account age, both of which can negatively impact your credit score.
