WR Starkey Mortgage

WHAT MAKES UP THE SCORE?

35% = based on payment history (i.e. on-time pays or delinquencies)
More weight on current pay history
30% = evolving credit/proportion of balance to high credit limit
15% = length of credit
10% = mix of credit
Installment (raises) vs. revolving (lowers)
the more # of finance company loans, the lower the score

WHAT ACTIONS WILL HURT THE SCORE?

Missing payments (regardless of $ amounts...it will take 24 mo to restore credit with one late pay)
Credit cards at capacity (i.e. maxing out credit cards)
Closing credit cards out (this lowers available capacity)
Shopping for credit excessively
Opening up numerous trades in a short time period
Having more revolving loans in relation to installment loans
Borrowing from finance companies

WHAT DOESN'T AFFECT THE SCORE?

Debt ratio
Income
Length of residence
Length of employment

APPROXIMATE CREDIT WEIGHT FOR EACH YEAR

40% = current to 12 months
30% = 13-24 months
20% = 25-36 months
10% = 37 + months

HOW TO IMPROVE THE SCORE?

Pay down on credit cards
Do not close credit cards
Continue to make payments on time (older late pays will become less significant with time)
Slow down on opening new accounts