Your credit score influences your home buying potential. FICO credit scores range from 300 to 850, with 300 being the lowest and 850 the highest. Generally, the higher the number, the better your loan terms. But what really impacts your credit score?
Late payments lower your score, so pay your bills on time.
Keep outstanding balances under 30% of your credit limits.
A short history isn’t a bad thing if you show responsible credit management. Having a few credit accounts is better than having no credit at all.
Lots of new credit account inquiries can lower your score. Mortgage and auto loan inquiries are an exception; these count as one inquiry within a 30-day period.
A variety of credit types – like an auto loan, credit cards, and other credit accounts – could boost your score.
