Hi, this is Ray Wallace at Home
Bridge Financial. Today, I want
to talk to you about your credit score.
Ah, little pie chart here for
you to help describe what makes up
your credit score and
where these
scores air coming from. What can
you do to improve your scores? So,
first of all, this
green section here, 35%
of your score comes up from your payment
history. That means do you
pay your stuff on top?
Um, basically, pay your stuff on
time, and that's 35% of score
your ah, next
one down here, 30% almost
the same amount. And a lot of people don't realize this
is the amount owed on your
revolving debt. So, for example,
credit cards. If you have a $5000
balance and you owe 5000 even
if you pay
the full amount every month, it's
gonna have an adverse effect on your credit score.
The next one appear the length of history.
So that just means do you
trade lines? If you had them for a long
time, did you just get this credit card? Have you had
it for 10 years? The longer you've had
it, the better your score.
That's 15% of your score.
And then these two appear whether you have a
new credit or the mix of types
of credit that you have so new credit
mean, did you just get a bunch of new new cars
and the mix of credit that's
gonna be? Do you have a car loan,
a mortgage credit card? What
kind of mix? And so those air kind of smaller
amounts. But really I would focus mostly
on the's to larger pieces of
the pie here. The amount owed,
especially, is a really good way to get
your scores up pretty quick.
So the question is, why is your FICO
score import? Um,
and the answer is, if
you're getting at mortgage, for example, it
can help determine what your interest rates
are and also
your mortgage insurance. If you're putting less than
20% down, you're gonna pay mortgage insurance,
and your FICO score can have an effect
on that.
Um, anyway, that's Ah, hopefully helpful.
I hope you have a great day and this is
and Ray Wallace at Home Bridge Financial
