The factors that affect your credit score:
The track record of paying your debts back in time. This may include your payments on retail accounts, credit cards, student loans, finance and mortgages. Also, others public records such as bankruptcies, wage attachments, foreclosures, judgments, suits, and liens. Paying your payments on time, even if its the minimum amount, helps your score. Missed or late payments hurt your score.
To see how deep your debt currently is and determines if its manageable to add more. If your credit cards are maxed out or have outstanding balance that is very high, this will negatively affect your credit score. Generally you do not want to exceed 30% of the credit limit on a credit card. If your payment pattern demonstrates good debt management, this will favorably affect your credit score.
This is how long you have been using or obtained a credit card. It is better to have a long credit history with a track record of good credit management. The longer you have paid your bills on time the better it looks to lenders.
This refers to the “mix” of credit you possess. This taken into account what your credit is used for, to make sure you a properly using the types of credit that you have been given.
Inquiries suggests that you have taken on more debt. Opening many credit accounts in a short amount of time can affect your score negatively. This is particularly problematic if the person does not have a long established credit history. Every time someone applies for a new line of credit, will count as an inquiry. However when shopping around for credit, inquiries made within the same 14 day period count as one. But applying for many credit cards in a small period of time will count as multiple inquiries and may lower your credit score. Requesting your credit score or requests from lenders with credit offers does not affect your score.
Building healthy credit takes time. Results depend on your individual credit history; no specific score increase, timeline or mortgage approval is guaranteed.
You can review your credit reports online for free every week through AnnualCreditReport.com. Check all three reports for accounts you do not recognize, incorrect balances and inaccurate payment information. See the CFPB guide to free credit reports.
If information is inaccurate, you can dispute it yourself for free with the credit reporting company and the business that supplied it. Keep copies of your supporting documents. Do not dispute accurate information simply to try to remove it. Follow the CFPB instructions for disputing credit-report errors.
The score in a credit-monitoring app may differ from the score a mortgage lender uses. Scoring models and the underlying reports can differ. A self-reported score or form answer is not a loan approval or denial. Learn more in the CFPB explanation of credit scores.
No company can guarantee a particular point increase or removal of accurate, current negative information. You do not need to pay someone to dispute genuine errors. Read the CFPB warning signs of credit-repair scams.
For VA-specific information, visit our VA loan and credit guide. You may also request a conversation with a loan professional about current program requirements and your next steps. Education does not guarantee eligibility or approval.