Did you know that FICO Credit Scores are used in making over ten billion credit decisions each year? If you’re thinking of buying or refinancing a home, you probably know that other elements also affect your ability to get approved for a loan, including income and employment history.
However, most financial institutions use the Fair Isaac Corporation (FICO) Score to decide whether or not to offer credit or make loans to consumers. FICO’s methods for determining credit scores is a closely guarded secret—but they’ve disclosed five main factors that impact a credit score:
- Payment history: 35%
- Amount of debt: 30%
- Length of credit history: 15%
- Credit mix: 10%
- New credit: 10%
Rankin Home Mortgage is based on the principle of lowering the barriers to homeownership for Americans—and part of that is boosting your credit score. We’re here to help.