Posted by on

What or Who Decides Your Credit Score?

Written by June Holder

What or Who Decides Your Credit Score?

Part 1

Just exactly what or who decides your credit score?  Where does this information come from?  It seems so complicated……

These questions come to mind of all people who start to delve into the credit world.  Sometimes it can be so confusing.  I have found some help through researching many of our different avenues of real estate; and have come up with something that I give out to many of my new clients.  It helps in understanding this credit score thing a little better.  The information below was provided by Fannie Mae Foundation.

Credit scores range between 200 and 800, with scores above 620-660 considered desirable for obtaining a mortgage.  The following factors affect your score:

1. Your payment history:  Did you pay your credit card obligations on time?  If they were late, then how late?  Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe:  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended.  However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history:  In general, the longer you have had accounts opened, the better.  The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have:  New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use:  Generally, it’s desirable to have more than one type of credit–installment loans, credit cards, and a mortgage, for example.*This information is copyrighted by Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation.  www.homebuyingguide.org

Next month we will learn what we can do to improve our credit scores.  Great advice!!

What Our Customers Are Saying

I had the pleasure of working with Stratum Real Estate Company in Cedar City, Utah. Paige Marsh was an exceptional real estate agent. She worked diligently to work a complicated transaction to fruition, and was readily available to answer all of...


5 stars for Brad Lewis

Brad goes out of his way to find a home that fits your needs. He helps you to see the pros and cons of a home so you can make an informed decision with confidence.


Loved working with Scott Bird

This is the second time we have worked with stratum real estate and we are happy with buying homes with them. Scott bird was very helpful, always there when I texted or called. He answered all of our questions and if he didn't know the answer he f...

Breanna Whittaker
Thank you Joel!

Our experience working with Joel Hilkert was one that required a lot of patience on his end, us being fairly new to the house purchasing process and our parents being on the other side of the country meant we needed a little bit of extra help. He ...

Casey & Brandi Lavoie

Alecia Jones just sold our house for us. She explained the whole process to us very clear and she was so on top of everything. We got what we wanted out of our house plus some. Her assistant Christal is wonderful to work with as well. As a team th...

Tammi Poulos
Determined to the End

Alecia was the perfect fit for us as home hunters. Being first-time buyers she helped us to enjoy the duration of the experience and helped make it fun in searching for our home. Even over the duration of a multi-year process in finding a home, sh...

Justin & Jessica Wayman

Very pleased. Joel was professional and honest. When asked, he gave his opinion, but did not try to over sell. He was very responsive, but also was respectful of our space. Our relationship seemed genuine and he gave us great personal attention. H...

Ferrin Affleck

Paige Marsh was the best real estate agent I have ever worked with and I have worked with at least 15 agents in the past 20 years on residential or commercial sales or leases. I work in Sales for a landscape company and I understand what it takes ...

Rob Archer

Paige was always calm, listened to our interests and concerns, and gave careful attention to details. She acted quickly when time was an issue and didn't become frustrated with us when we changed our mind after making an offer. Paige worked with u...

R & R Fawson

For several months,my husband and I were struggling in trying to find a home that would fit our needs. We started working with Paige from The Bird Team and within 1 week Paige found us the perfect home that suited our needs. She was very knowledge...

Lance & Brenda

Read More Testimonials »