preparing for home ownership
Request and Review Your Credit Score
Your credit score also affects your ability to get a home loan. There are many types of credit scores, and each has its own method of determining if you are a good or bad credit risk. The most frequently used scoring system is known as FICO. For a small fee, you can request a copy of this score from FICO itself, or from any of the three credit reporting companies. Here's how FICO determines your credit score:
| Factor | Percent |
|---|---|
| Your payment history | 35% |
| Your outstanding debts | 30% |
| Length of time you've had credit | 15% |
| Types of credit you currently hold | 10% |
| Age of your current credit accounts | 10% |
| Total | 100% |