Learn More About Credit & Home Loans

It's difficult to get a loan, a home, a cell phone or in some professions, a job with a low credit score. A person's credit worthiness fluctuates over the course of their life and can always be improved with a chance in habits and circumstances.

What affects my credit score?

Credit scores are based on a multitude of measures. Typically, your score will range between 300 and 850. The largest percentage of your credit score is determined by your payment history. A long record of paying your bills on time in the full amount due, will improve your credit score. A history of missed or late payments will be detrimental. The next largest factor after that is current debts. A large amount of personal debt, compared to their cumulative credit limit, can lower your credit score.

Also considered are your credit history and types of credit in your name. Having multiple lines of credit works in your favor if the all lines are being paid faithfully. For example, having an open credit card, a student loan, and an auto loan is considered better than simply a credit card.

Delinquent bill payments, a multitude of credit inquiries over a span of months and opening and closing unneeded accounts are examples of what can negatively impact your credit.

How can I improve my credit score?

Improving your credit score can take time and patience, but U.S Mortgages can help. The most straightforward way to improve your credit score is to pay your bills on time every month. Being a day or two late may not mean much financially to the company you're paying but it does affect your credit. When you're looking for a home loan, be sure to shop around within the span of a few weeks: credit inquiries within a month or so of one another don't individually ding your credit.

Keeping a low credit utilization ratio also positively impacts your credit score. Banks want to see that the current unpaid balance in your name is less than 30% of your total available credit. Paying off excess charges, and maintaining a low balance over time looks very favorable to credit reporting agencies.

About US Mortgages

US Mortgages has been offering credit counseling to its borrowers for over 20 years. If you have any questions about your credit, let us know online, </about-us/contact-us-mortgages> or give us a call. We'll be glad to help.