Thinking of buying property?
How is your credit scored?
The following factors are taken into consideration:
- 35% --payment history
- 30%--amount owed
- 15%--length of credit history
- 10%--new credit
- 10%--types of credit in use
Simply put, for good credit you need to pay bills on time, do itall the time, owe little money compared to your income, use credit reasonably,and donot open up new accounts prior to applying for a loan. In this particular economic time, good credit is of utmost importance to meeteligibility requirements for a loan.
A good credit score is above 680. A score below 680drastically reduces your eligibility for a loan. Therefore, check your score when thinking of buying real estate. If it is below 680, make a plan to correct it by speaking with a financial advisor/lender.
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