Five Factors that can Influence your Credit Score

Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance:

• Payment History – 35% Impact

• Outstanding Credit Balances – 30% Impact

• Credit History – 15% Impact

• Type of Credit – 10% Impact

• Inquiries – 10% Impact

WHY YOUR CREDIT SCORE IS SO IMPORTANT

Credit scores are used today to help determine the rates you will  pay on loans and credit cards and even your insurance premiums. The internet allows a potential buyer to easily get access to their credit report and score on annual credit report.com. A difference of 40 or more points on your credit score can cost you $100.00 or more per month on a $150,000 30 year fixed-rate mortgage. If you are considering a home purchase in Gwinnett County, it is in your best interest to make every effort to increase your credit score today.