Credit scores are comprised of five factors.  Points are awarded for each component.  I have listed the factors below in order of importance.

1.) Payment History - 35% Impact

2.) Outstanding Credit Balances - 30% Impact

3.) Credit History - 15% Impact

4.) Type Of Credit - 10% Impact

5.) Inquiries - 10% Impact

Are you surprised that your payment history is only 35% of your credit report? 

Why do outstanding credit balances effect my credit score almost the same as a good payment history?

The answer is discipline and restraint.  A person with a good payment history may have a mountain of debt  they pay on time.  However, if it is clear the majority of your accounts are maxed out or over 50% of the available limit, this demonstrates lack of restraint, discipline or someone who is basically living off credit rather that cash.  The credit limit versus current balance is very important & can adversely effect your credit score.

So many folks worry about inquires.  I hear it all the time, "If you run my credit will my score go down?"  Since inquiries are only 10% of your score a basic credit check should not cause your score to drop dramatically.

For more information on how your behavior can change your credit score, feel free to give me a call.  I do not advertise or charge for credit counseling, if a few of my tips can help you raise your credit score, I'm happy to help you free of charge.  I want all of my clients to realize the dream of home ownership.

I can be reached at 210-849-9030 & you can email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

I look forward to helping you make your dreams come true.