Your credit score, the number lenders use to estimate the risk of extending your credit or loan, is a key factor in determining whether you will be approved for a mortgage. The score is not a fixed number, but fluctuates regularly in response to changes in your credit activity (z. B. if you open a new credit card account). Which number is good enough, and how do the scores affect the interest rate you offer? Read on to find out.
FICO Score
The most common credit score is the FICO score, created by Fair Isaac Corporation. It is calculated using the following data from your credit report: Your payment history (which represents 35% of the score), the amounts you owe (30%), the length of your credit history (15%), types of credit you use (10%), and new credit (10%).
Read more