Credit Scores Explained For Beginners! How To Raise Your Credit Score To Get Cheaper Loans
Your credit score is one of the most important factors when it comes to determining if you can get a loan and how much it’ll cost. In this video, I’ll be explaining how your credit score is determined and what you can do to quickly improve it!
Your score ranges from 350 to 850 and is determined by five main factors:
Credit history 35%
Amounts owed/ Utilization Ratio 30%
Length of Credit History 15%
Credit Mix 10%
New Credit 10%
Maintaining a high credit score is an incredibly important part of your financial success. Having a high credit score enables you to get loans at the best rates and terms. This can mean the difference between getting a mortgage with a low-interest rate versus being denied for a home loan.
Maintain your credit by paying your bills on time (at least the minimum payment) and by keeping a low utilization ratio. Keep your credit lines open as long as you can to build up your credit history and limit the number of new inquiries on your credit score.
Keep your score high, it’ll be worth it!
If you’re looking for a hard money loan for your next fix and flip project, then schedule a call with me to see how I can help!
2:15 How Is Your Score Determined?
2:39 Payment History
3:36 Amounts Owed
4:48 Length of Credit History
5:24 Credit Mix
5:47 New Credit
6:30 How Do You Determine Your Score?
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