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Understanding Credit Scores with O1ne Mortgage

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. Our team is ready to assist you with confidence and expertise.

What Is a Good FICO Score?

A FICO score ranges from 300 to 850. Generally, a score of 700 or above is considered good, while 800 or above is excellent. In 2023, the average FICO score in the U.S. was 715. Achieving a good credit score can help you qualify for loans with lower interest rates and better terms.

What Is a Good VantageScore?

VantageScore models also range from 300 to 850. A score between 661 and 780 is considered good. Both FICO and VantageScore are used by lenders to assess creditworthiness.

What Affects Your Credit Scores?

Several factors influence your credit scores, including:

• Payment history: Timely payments boost your score, while missed payments can hurt it.
• Credit usage: The amount of credit you’re using compared to your limit.
• Length of credit history: The age of your accounts.
• Types of accounts: A mix of credit types can be beneficial.
• Recent activity: New credit applications can impact your score.

Why Having a Good Credit Score Is Important

A good credit score can make it easier to achieve financial goals, such as qualifying for a mortgage or car loan with favorable terms. It can also affect non-lending decisions, like renting an apartment or getting insurance.

How to Improve Your Credit Scores

To improve your credit scores, focus on the following steps:

• Make all debt payments on time.
• Keep credit card balances low.
• Open accounts that will be reported to the credit bureaus.
• Only apply for credit when necessary.

What to Do if You Don’t Have a Credit Score

If you don’t have a credit score, you may need to open a new account or add new activity to your credit report. Consider starting with a credit-builder loan or secured credit card.

Why Your Credit Score Changed

Your credit score can change for various reasons, such as a late payment or paying down a high balance. Monitoring your credit score can help you understand these changes and take steps to improve it.

Monitor Your Credit Report and Score

Regularly checking your credit score can help you improve it over time. O1ne Mortgage recommends using credit monitoring services to stay informed about your credit health.

For more information and personalized assistance, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your mortgage needs with confidence.

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