What is a credit score and how do I raise mine?  A credit score is an educated estimate of wether or not a borrower will have a 90-day late payment within the next 24 months. Credit scores are composed of 5 different weighted catergories, which are combined to give you your total point score.

35% (up to 300 points) come from your payment history. Your history is drawn from the frequency, severity, and recent history of your late payments. If you have a late payment within 6 months of when your credit is drawn, your credit score will take a significant hit.

30% (up to 250 points) comes from revolving credit card balances. Balances beyond 50% of the high credit limit will cause a deduction to your score. Pay down all cards to 30% fo the credit limit (but do not close them) to raise your score.

15% (up to 125 points) comes from credit history. New credit lowers your score, so pay off new accounts and keep the aged accounts when possible.

10% (up to 85 points) comes from the type of credit you have. 90 day same as cash loans are a major detriment to your score, so paying off all such loans and maintaining a good mix of credit is best.

10% (up to 85 points) come from inquiries. Each inquiry, excepting mortgage inquiries, counts as 5-15 points against your total credit score.

This article was provided by Integra Pacific Mortgage Inc. (425)697-5844