5 factors that determine first time home buyers credit scores

Good morning and welcome. As a first time home buyer, you will have a lot of questions. One of those questions may be what information is use to determine your credit scores. Here are the 5 pieces of information that Trans Union, Experian and Equifax use to determine your credit scores.

1. Payment history for all credit accounts: 35%

2. The portion of your available credit that you have used 30%

3. How long you’ve had an active credit profile: 15%

4. The mix of credit types you have: 10%

5. Your recent credit activity: 10%

Also, the scoring models used by these agencies, including VantageScore and FICO, are not the same, although they use the same pieces of information. Please keep in mind, the credit scores provided by the 3 agencies will vary, because not all lenders and creditors report information to all three major credit agencies. And, when they do, it’s usually done at different times.

Some creditors report to only one agency. Others report to two, while some report to all three agencies. For this reason, the information in your credit file will always vary.

It is always a great idea to check your credit report for errors. According to a Consumer Report, 34 percent of consumers reported finding at least one mistake in their credit report, while 29 percent found personal information errors such as wrong name or address.

We at First Home Houston is always looking out for your best interest. As always, we thank you for stopping by. Until next time… Diana.