Credit Scores and Credit History- MMM S2 E3


When having to value your credit report and give it a score, lenders review your credit history to determine how likely you are to repay your loan on time.

Here are some key factors that influence your credit score:

  • Payment history
  • Age of credit
  • How much current unpaid debt you have
  • Your credit utilization ratio
  • Your mix of credit accounts
  • How much new credit you’ve applied for

Your payment history and credit utilization ratio have a greater impact on your scores than the age of your credit accounts. So if your case is that you’ve missed some payments for instance, that will affect your credit score despite the length of your credit history.

However, If you are responsible when it comes to your spending and consistently pay on time everything and have a low credit utilization ratio, you’ll b on the right path for success and getting approved by lenders.

How do I get a good credit score and how long does it take?

Usually you will need to have at least one account open that has been reporting to the credit bureaus for six months to have enough information to generate a credit score.

You can continue to build your credit history by paying your bills on time and establishing a mix of credit accounts that includes installment loans (like a student loan or mortgage) and revolving lines of credit like a credit card or home equity lines of credit.

However, It depends on every case and it can vary from one person to another depending on multiple factors.

So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.

Stay hungry and stay positive!

Make it a great day,

Sean La Rue


Instagram: @seanlaruehomeloans


This entry was posted in Uncategorized by Sean La Rue. Bookmark the permalink.

About Sean La Rue

Sean lives in the Palm Desert area and works with Franklin Loan Center as the Senior Vice President. Sean is ready to provide you the concierge level-of-service experience in purchasing or refinancing a home in Palm Springs, Palm Desert, La Quinta, Rancho Mirage, Coachella, Indio, or anywhere in California. His commitment is to treat your home loan like his own because he cares about your family.

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