When purchasing a home, your credit score plays a role.

So what makes up your score?

•35% payment history
o How often do you pay your accounts on time?
o Late payments may lead to a lower score

• 30% capacity
o How much of your total credit have you used?
o Less is more… lowering debt can be the key to a better credit score

• 15% length of credit
o A longer history of responsible credit use will likely lead to a higher score

• 10% new credit
o Past 12-18 months
o Looking at number of inquiries and opening dates on accounts

• 10% types of credit used
o Having experience with different kinds of credit can help improve your score

Payment history credit weighing:
• 40% current to past 12 months
• 30% past 13-24 months
• 20% past 25-36 months
• 10% past 37 months and beyond

*Source: Ellie Mae 2017