Your credit score is based on your track record of making payments and managing your credit. The score is calculated from a variety of credit data in your credit report, by using a formula created by the Fair Isaac Corporation called a FICO score. The percentages in the chart below reflect how different aspects of your credit are weighted in determining your score.
If you have a lower score, the good news is that negative items will diminish over time. The older a negative item becomes, the less it adversely impacts your credit score. The law states that a derogatory item "CAN be" reported for 7-10 years, but it does not state that it "MUST be" reported. In many cases, negative items may be deleted after 3-4 years. The fact is you can begin to improve your credit score immediately.
If your FICO score is less than ideal, I can help you to determine your best course of action, so we can get you on the right path to securing a home loan.