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Flower Mound Realtors Reveal Factors That Affect Your Credit Score

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Many people don’t really understand the factors that affect their credit score most, or how one factor may be more important than another. As experienced Flower Mound realtors, we understand that potential homebuyers worry about having a good credit score – you want to be credit-worthy when it comes to banks or lending institutions.

What impacts your overall credit score most? We’ll start from what influences it least, to what influences it most.

Trying to get new credit. This accounts for about 10% of your overall credit score, and is important because having numerous credit inquiries within a brief time period indicates you are trying to get more credit, a fact that makes lenders a bit nervous.

Types of credit. Having a diversified mix of credit helps your credit score, as long as you make payments in a timely manner. What’s a good mix? A home loan, auto loan, and a credit card or two. The types of credit you have account for about 14% of your overall credit score.

Longer history of maintaining good credit. If you have paid on credit cards, your home, or for other goods over a long period of time, you will have an easier time with lenders because they can see that your history of managing your credit is good. How long your credit history is makes up about 15% of your overall credit score.

How much debt do you have? Your level of debt accounts for a whopping 30% of your credit score. Having credit cards charged to the max is not a good idea. Try to keep balances on credit cards at 30% or less of the limit, as lenders know that when an individual has credit cards that are “maxed out,” it’s more difficult to take on additional payments. The less debt you have, the more capable you look to potential lenders of being able to take on additional expense.

How’s your payment history? Paying car payments, your mortgage, credit card bills, and even household utilities on time is the most important factor in your overall credit score, accounting for 31%. Try not to miss payments, or pay your bills late – this not only affects your credit score, it racks up late fees and penalties!

At Team Nelson, we understand how important it is to have a beautiful home you can call your own! Good credit is key in being able to purchase the home of your dreams. Have other questions regarding credit or other factors which could impact your ability to purchase a home in Denton, Frisco, or other cities in the Dallas area? Call our real estate professionals today.

What People Are Saying

  • This was the second house that we have sold through Bill Nelson. We also have bought one through him. All three transactions went very smoothly.
    We would use him again .

    Tracy4247 Avatar
    Tracy4247
    8/31/2015

    The Nelson team was thorough and professional and answering all our questions. They helped us to get the top of the market price for our house and were a pleasure to work with. Would definitely recommend.

    tina phaup Avatar
    tina phaup
    12/11/2018

    Excellent experience with Casey and her team! I would definitely recommend! From the assistance in picking the best area for my first home to helping me understand the entire process, I felt taken care of and trusted I made the best decision possible.

    jtownsend1981 Avatar
    jtownsend1981
    3/31/2017
  • Incredibly professional realtors that really care about their clients. They go to extreme measures to find the right house for their clients and are experts in the areas where they operate ensuring max value, whether you are buying, selling or both. Cannot recommend them enough!

    Scott Schaper Avatar
    Scott Schaper
    12/11/2018

    Andra, Bill and Team are absolute pros that can help you buy or sell a home. They do all the work for you. And their system is a game changer! Why pay the full fees to sell a house? Using the YourHomeFree system will save you thousands of dollars in sales fees, yet you still get the full compliments of realtor services and marketing!! I have been a customer for years and will never go back to the old way. So if you want to SAVE MONEY and still get FAST, GREAT SERVICE, then you need to look no further.

    Jimmy Smith Avatar
    Jimmy Smith
    4/11/2019

    We were very pleased with Bill and his team! We sold our home in Southlake and saved $18,000 by using Bill! His office consists of experts in all phases of selling a home .. each was very efficient and knowledgeable in the process. When selling a home why would you not prefer to save 3% in realtor fees? My husband and I would use Bill again in a heartbeat!

    Candace Reed Avatar
    Candace Reed
    12/11/2018
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