“It seems that interest rates and ability to get a home loan are more credit-driven than ever. Everyone talks about credit and I know it’s about paying your bills. But what exactly makes up a credit score?”
Answer:
There are 5 “Components of Credit”. Here they are, along with their %’s as they make up your credit score:
10% — Mix of credit
10% — Credit inquiries
15% — Length of your account histories
30% — Debt ratio: revolving account balances divided by the limits
35% — Past delinquencies
Source: Credit repair/improvement expert Derrick Evens of Perfect Credentials,
858-571-0271.
