If you’re buying a loft or condo for sale in DTLA, you’ll probably need a mortgage – most people do. And that means you need the best possible credit score; that way, you’ll qualify for the best rates and terms. In order to raise your credit score, you have to first understand it.
But what goes into your credit score?
What Goes Into Your Credit Score?
Your credit score is determined by five factors:
- Payment history
- Credit utilization
- Credit age
- Different types of credit
- Number of credit inquiries
Your payment history counts for 35 percent of your credit score. If your payments have always been on time, or if they’ve been 30,60, 90 (or more) days late, this part of your score will reflect that.
Search for homes in DTLA here:
Lenders want to see how much of your available credit you’re using, so 30 percent of your score is based on this factor.
The age of your credit – that is, how long creditors have been willing to work with you and how long you’ve kept open your accounts – is worth 15 percent of your score.
Different Types of Credit
Lenders want to see that you’re able to pay for multiple things at the same time, so different types of credit – like credit cards, personal loans and other lines of credit – make up 10 percent of your credit score.
Number of Credit Inquiries
Each time you apply for credit, you get a mark on your credit report. They stick around for about 2 years. Lenders look at how much new credit you’ve applied for to see if you’re a high risk; this part counts for 10 percent of your credit score.
Are You Buying a Loft or Condo in Little Tokyo?
If you’re thinking about buying a condo in Los Angeles or a nearby community, call us at 213-254-7626 or contact us online. While you’re here, check out our: