Looking to buy or sell a home in Merrimack Valley? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at(978) 852-3001 for a FREE home buying or selling consultation to answer any of your real estate questions.
Fair Isaac Corporation investigates the history and creditworthiness of clients and customers across the country. There are a number of different credit agencies such as Experian, Equifax, and Transunion, which actually compile data with billions of pieces of information regarding creditworthiness. When you're selling or leasing to a prospective client, it's important that you understand their creditworthiness is a criteria, which in most cases will enable us to predict the creditworthiness of a prospective client.
There are five different categories of payment history, which are reviewed in order to determine creditworthiness.
- Payment history is the first, which accounts for 35% of the FICO score.
- Amount owed compromise is a 30% factor.
- Length of credit history is 15%.
- Newly opened accounts and inquiries amount to 10%.
- The mix of credit cards, retail accounts, installation loans, installment loans, and mortgage loans determines the final 10%.
"Credit agencies compile data with billions of pieces of info regarding creditworthiness."
The credit score itself can range from between 350 to 850 as far as a general score, and those scores 720 and above are considered excellent. Between 680 and 719 is good, and the scores from 620-679 generally garner a closer look from lenders. Scores between 585 and 619 put someone at a higher risk for default, and a score of 584 or below makes the lender question whether or not to make credit available.
If you have any questions about creditworthiness or any other real estate factors, please feel free to reach out to me today. I'd be happy to speak with you.
