What elements make up your credit score? MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

When you buy a home, your credit score plays an essential role: It can impact what loans you’re eligible for and the interest rate you get (which will affect your monthly payment costs).

But what determines your score? The exact elements depend on which scoring method you’re looking at, and lenders often use FICO.

Generally speaking, credit scores range from 300 to 850 and are influenced by the following five factors:

1. Payment History: Paying credit card dues and other monthly bills on time can help increase your credit score. It can hurt your score to be consistently late on payments or overdue on some accounts. This is usually the biggest chunk of your overall score (about 35%).
2. Credit Mix: Having a mix of credit types — auto loans, credit cards, mortgages — shows you have a wide range of experience managing debt. Only having one type of debt (or no debts) doesn’t necessarily reflect as well. Typically, this is roughly 10% of your credit score.
3. Credit Utilization: Your credit utilization rate is how……….

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