Credit Score Calculation for New Home Purchases

Sure, you have heard about how important your credit score is for buying a new home in Atlanta, but have you ever wondered what goes into your credit score? According to the Equifax Finance blog article, “How Your Credit Score is Calculated,” there are five factors:

1. The number of accounts you have.
2. The types of accounts.
3. Your available credit.
4. The length of your credit history.
5. Your payment history.

Your credit score is a numerical representation (typically ranging from 300 to 850; and the higher the better) of your likelihood to repay a bill and it is based on the information in your credit report. The information in your credit report is sent to credit reporting agencies by lenders. You can get a copy of your credit report for free once per year from each of the three credit reporting agencies (Transunion, Equifax and Experian). Accuracy is very important in your credit report, so it is wise to check your report three times per year so you can quickly find and fix any errors. An error could mean a negative impact on your credit score. If you do find an error, you should report it to the credit reporting agency immediately.

Read the full article on the Equifax Finance blog, and while there, get more tips on credit and all types of personal finance matters, from insurance to retirement to identity theft prevention.