What Makes Your Credit Score Go Up or Down?

What Makes Your Credit Score Go Up or Down?

What Makes Your Credit Score Go Up or Down?

When you are looking for a mortgage, your credit score is one of the most important factors in determining the type of loan you can receive. This article will discuss a few of the biggest influences on your credit score, and what you can do to avoid a lower score.

FICO credit scores are a snapshot of your credit history at the moment the report is pulled. Some people may be surprised to learn that their credit score changes daily. The fact is, the nature of a credit score is more flexible than many consumers realize. Information on your credit report can change from day to day based on a number of different elements.

To learn more about home loans and your credit, visit the mortgage professionals at Mortgage Investors Group.

FICO credit scores

FICO credit scores were developed by the Fair Isaac Company in 1989. The FICO model is the most prevalent method of credit scoring used today. The FICO model is so pervasive in our financial vocabulary that the term “credit score” implies a FICO credit score.

FICO scores are designed to assess a home buyer’s ability to pay their mortgage. High FICO scores represent a lower risk for default, and lower credit scores represent a higher risk for default. FICO scores will take all the information from creditors found on your report into consideration. Although the exact calculations for determining a credit score are not exactly transparent, your score is made up of different components. They are as follows: Payment History: 35%, Credit Debt: 30%, Length of Credit History: 15%, Type of Credit Used: 10% and Credit Inquiries: 10%

Once you understand what makes up your credit score, you can focus on things you can do to improve it. Visit the mortgage professionals at Mortgage Investors Group today today to learn more about credit and home loans.

Payment history

It’s crucial to keep up with all your payments, since it will affect 35% of your credit score. At the very least, make sure and keep current on all your minimum monthly payments. Any time you have a late payment, it will negatively affect your score. The amount of the payment will also be considered, resulting in lower scores for larger amounts owed. Even one missed payment can do significant damage to your credit score, so make sure and keep up with your minimum payments. Another thing to keep in mind is that your credit report will also indicate if you’ve had any foreclosures or bankruptcies in the past.

Credit balances and your score

Since a large part of your FICO score is made up from the total amount you owe on your lines of credit, it’s a wise idea to try and keep your balance to a minimum. To keep your credit score under control, try and keep your credit balance under 20% of the limit. Remember that credit scores pull data from each individual line of credit you have. Savvy consumers will distribute purchases over more than one credit card to keep balances low.

If you are looking a home loan, contact the experts at Mortgage Group Investors today for the latest quotes.


Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020