How Is Your Credit Score Calculated and What Does It Have To Do With Real Estate?
What does your credit score have to do with real estate? Very simple…your credit report is ran whether you are buying a home or renting a home. It’s that simple.
With your credit score being one of the major factors used when buying or renting a home I decided to do some research to help out my clients. I called many credit companies and they didn’t want to give me to much information since I wasn’t going to be spending tons of $$ with them. I was finally able to get a hold of someone whom wanted to educate the everyday common person. Her name is Gina Adan, a credit restoration specialist. She had a lot of interesting and fun facts to fill me in about a persons credit report.
Did you know…
Your credit score is calculated using 5 factors:
1.) 10% Type of credit revolving or term
2.) 10% New credit acquired within 2 years
3.) 30% Amount you owe
4.) 15% Length of credit
5.) 35% Payment History
Might want to think twice about when you decide to skip a payment or open up a new credit card. The more educated you are about your credit and how it impacts you and your ability to buy or rent a home, the better off you are. Think about it like this…..the HIGHER the credit score,the LOWER your monthly rental/mortgage payment which INCREASES your net worth. So if you are looking to build your credit score or have a credit question….call Gina Adan at (954) 874-5083. She is a wealth of information.