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How Your Credit Score is Determined

Payment History

Amounts Owed

Length of History

Types of Credit

New Credit

Credit Score is Determined

35% Payment History
HOW OFTEN DO YOU PAY YOUR ACCOUNTS ON TIME?
Late payments could possible lead to a lower score.
30% Amounts Owed
HOW MUCH OF YOUR TOTAL CREDIT HAVE YOU USED?
Less is more! Lowering debt can be the key to a better credit score.
10% New Credit
HAVE YOU OPENED ANY NEW CREDIT LINES LATELY?
Opening several accounts in a short time can lower your credit score.
10% Types of Credit Used
DO YOU HAVE MORE THAN ONE LINE OF CREDIT?
Having experience with different types of credit can help your score.
15% Length of History
HOW LONG HAVE YOU HAD CREDIT HISTORY?
A longer history of responsible credit use will likely lead to a higher score.
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Tips For Establishing And Maintaining Healthy Credit

Borrow only what you can afford to repay.
Make all of your payments on time.
Avoid excessive requests or inquiries for credit
Have an emergency account to pay for unexpected expenses
Check your report annually to contest and remove any erroneous information
Keep a high credit line and a low balance. Credit utilization ratios measure this relationship, and lower is better.
Do not open new store credit cards just to save on a purchase. New accounts can lower your score, and too many payments can be difficult to manage. Saving 10% on a $300 lawn mower means little if it costs you even just fractionally more on a $300,000 home loan.
Do not open new accounts just to transfer balances for an introductory rate. In addition to possibly lowering your score, these offers often have traps. Instead, use them to leverage a lower rate from your existing card company.
Do not close old accounts. If you have a good record of payments on old accounts, these will benefit your score. Using them occasionally and conservatively will keep them active and contribute toward a good score.
Do not be afraid to use credit. Without the use of credit, you will have no score, and that can be just as bad as a low one.
Maintain a variety of accounts. A combination of revolving, installment and secured financing along with a good record of payments will yield a higher score.
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ABOUT US

PierPoint Mortgage, LLC, was founded in 2003 and had been offering brilliant services ever since. It is a nationwide mortgage broker that has over 50 years of mortgage experience.

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