We’ve addressed a few ways to save money for your home and how to earn a better interest rate through improving your credit score. However, do you know why having a good score helps your interest rate or which components of your financial life influence your score?

When you sit down with one of the loan professionals at AmeriFirst we’ll discuss your score which developed by the Fair Isaac Corporation. Scores range from 300 to 850--the higher the score the better. Commonly referred to as a FICO score, your financial lifestyle is weighed and measured several different ways:

• Payment history is 35% of the FICO score. Late payments and bankruptcies have a negative impact on your score.
• How much you owe is 30% of the FICO score. The more you owe compared to your credit limit, the lower your score.
• Length of your credit history is 15% of your FICO score. The longer the credit history the higher the score. However, if you have a negative payment history, your score will be lower.
• New credit applies to 10% of your FICO score. Your credit score will be weighed against a new credit accounts and the length of your credit history.
• Miscellaneous facts are 10% of your FICO score. A mix of credit accounts such as credit cards, installment loans and personal lines of credit can add to your score.

Source: http://www.pueblo.gsa.gov/cic_text/money/creditscores/your.htm

Our trained loan professionals can assist you with ways to improve your score and lower your interest rate. Meet with us today—call 800-466-5626 or click here to contact us online.