If you are considering purchasing a home, you will want to have a good credit score. The better your credit score, the better chance you have of qualifying for a mortgage and it may help you get a better interest rate. Credit scores can range from not having one at all up to 850. Below is a rundown of what figures into your credit score. By making sure you are doing what credit reports check, you can increase your credit score.

• About 35% of your credit score is based on your payment history. Pretty simple really, you get a bill, you pay it on time your score goes up, you pay it late, your score goes down.
• Another 30% or so of your score is based on your credit utilization. Are you paying down your debt? Is your credit maxed out? Keep you debt to a minimum, pay it down and don’t use all the credit you have available in order to increase your credit score.
• Some 15% of your score is based on how long your credit history is. The longer you have been paying your bills on time the better.
• Around 10% is based on using different types of credit. A mortgage, a revolving credit card, a personal loan are all good as long as you pay on time and are paying down the balance.
• The last 10% is based on report requests. If you are opening up a lot of accounts or purchasing a lot of items that require a credit check in a short time period this will negatively impact your credit score.

What is a good credit score? In general 680-720 is good, over 720 is excellent. Anything much under 600 may keep you from qualifying for a mortgage. If you have a very low score you may want to speak with a banking professional for assistance in repairing your credit.