There are many factors that can impact your credit score. Hope this helps give you an overview of how credit scores work.

• Payment history: This is the most important factor that impacts your credit score. Late payments, collections, and bankruptcies can have a negative impact.
• Credit utilization: This is the amount of credit you are using compared to your credit limit. High credit utilization can have a negative impact on your score.
• Length of credit history: The longer your credit history, the better your score. This is because it gives lenders a better sense of your creditworthiness.
• New credit: Opening multiple new credit accounts in a short period of time can have a negative impact on your score.
• Types of credit: Having a mix of different types of credit, such as credit cards and loans, can have a positive impact on your score.

Tips for Improving Your Credit Score

• Pay your bills on time: Late payments can have a significant negative impact on your score.
• Keep your credit utilization low: Try to keep your credit utilization below 40% of your available credit limit.
• Check your credit report regularly: Look for errors and dispute any inaccuracies with the credit bureau.
• Limit new credit applications: Only apply for credit when you need it and try to avoid opening multiple new accounts in a short period of time.

Don’t let less than perfect credit deter your from buying a home. My team and I are hear to help you make your dreams a reality. Contact us today to begin your road towards homeownership.

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