Your credit score is also referred to as a FICO score and is a mathematical formula. The credit score is used by most companies to see if you are a good credit risk or not. Equifax and Trans Union will crunch the numbers from the credit report and spit out a number somewhere between 300 and 900 or even no number or an R for Reject. A score of 680+ is considered excellent.

A score of over 620 is considered good an also the minimum to qualify for a mortgage with less than 20% down payment or more. However, no matter what your score is, your credit report must also have at least 2 active accounts in good standing for a full 2 years with a limit of at least $2,000 and have no current or recent delinquencies. Those active accounts can be major credit cards, car loans, lines of credit, student loans etc.

Our goal is to get your score from where it is now to over 620 as well as have those two active trade lines for two years with no delinquency or late payments.

Scores are calculated based on five key areas. Here is a chart for your reference…