Five Factors that Make Up a Credit Score for Easy Nashville Home Purchase

Score with Credit to score a homeThere is a lot of fact and fiction with credit scores, credit reports and credit in general – and you need to know the difference when it comes to getting ready to buy a new home in Nashville. The personal finance experts at the Equifax Finance blog have broken down the facts and separated them from the fiction in a short article that explains how one’s credit score is calculated.

There are five major factors that go into your

credit score:

  • The number of accounts you have
  • The types of accounts – the mix of accounts (from auto loans to home mortgages to credit cards, etc.)
  • Your available credit – how much credit you currently have available to you
  • The length of your credit history – how long you have had credit
  • Your payment history – whether or not you have paid your bills (and if you’ve paid them on time or not)

This information is sent to credit reporting agencies (the big three are Equifax, Experian and Transunion) from lenders. Scores typically range from 300 to 850 and the higher your score, the better. The score is a numerical representation of how likely you are to pay your debts (it is used to assess your risk for a lender). You can get your credit report for free once per year from each of the three major credit reporting agencies. At that time, you can also get your credit score from that agency for a small fee. Your score will vary across agencies, because the information they receive varies.

Get more info on credit scores and credit reports in the article, “How Your Credit Score is Calculated,” from the credit pros at Equifax; and when you’re done, browse the rest of the Equifax Finance blog for more helpful credit advice as well as advice on retirement, insurance, taxes, real estate,

identity protection and more.

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