Why is My Credit Score Only…

Keelin Billue Gubbels Mortgage News, New Home Buyer, News, Refinancing

Many times a borrower has asked “why is my credit score only ###”?   The answer will depend on the credit profile – here’s the breakdown:

35% – payment history : paying your bills on time is 1st primary factor

30% – amount owe/ credit balance : not having all your credit cards max out/close to limit is 2nd primary factor

15% – length of your credit history/how long each tradeline has been opened : long history is good, don’t be closing all old, old credit cards

10% – new credit line opened/credit inquries : everyone wants to give you a line of credit, all will check your credit, don’t have excess inquiries

10% – type of credit opened : a good mix of credit is good, credit card, installment loan, mortgage, etc…


Joon Choi – Senior Loan Officer @ Chicago Financial Services, Inc.