Your credit report is considered to be your ‘financial fingerprint’. This file that remains with you is arranged and divided as described below.
Payment History (35%)
- Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
- Presence of adverse public records (bankruptcy, judgments, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
- Severity of delinquency (how long past due)
- Amount past due on delinquent accounts or collection items
- Time since (frequency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
- Number of past due items on file
- Number of accounts paid as agreed
Types of Credit Currently in Use (10%)
- Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)
Outstanding Debt (30%)
- Amount owing on accounts
- Amount owing on specific types of accounts
- Lack of a specific type of balance, in some cases
- Number of accounts with balances
- Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
- Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
New Credit (10%)
- Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
- Number of recent credit inquiries
- Time since recent account opening(s), by type of account
- Time since credit inquiry(s)
- Re-establishment of positive credit history following past payment problems
Length of Credit History (15%)
- Time since accounts opened
- Time since accounts opened, by specific type of account
- Time since account activity
800+ — An 800 or greater score is the best that you can acquire. You are considered a low risk. You will get low interest rate loans, and lenders won’t have a problem lending to you.
760-799 — The high 700 range is also terrific. If your score is in the high 700’s, you have nothing to be concerned about.
700-759 – The lower 700 range is still considered very good. Most people with good credit are in this range.
660-699 – When you are below the 700’s you get to the marginal area. Most people with average credit, meaning they have negative items on their credit report are in this area. You will still get approved for credit, but you will most likely either pay fees, or get a higher interest rate.
620 – 659 – This is the bad category. It is doubtful that banks and lenders are going to lend to you. You will find it difficult to get any kind of loan if you are in this category.
Pat Billheimer, NMLS 1172852
Cell: 480-442-8716 or 866-229-1418
text: 703-928-5833 efax: 480-800-6547
Capstone Financial/CTP Funding
**qualifying buyers for seller financing**NATIONWIDE!