How is your Credit Score Determined?

When it comes to getting a Lake of the Ozarks home loan, one of the biggest determining factors is your Credit Score.   There is a lot of confusion about what a credit score is and how it is determined.  Here are a few things that are considered when your credit score is determined.

Your credit score is usually based on the answers to these questions:

1. Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will negatively impact your score.
2. What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
3. How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
4. Have you applied for new credit recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
5. How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

**Information taken from http://www.federalreserve.gov/consumerinfo/fivetips_creditscore.htm

We would love the opportunity to work with you to help determine your credit score and give you some ideas on how to improve your score.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com.

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Michael Lasson

Sr. Residential Mortgage Lender

2140 Bagnell Dam Blvd, Suite 303B

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712