Today we are going to take a brief look at the factors involved in calculating your credit score. When dealing with hard money lenders, your credit score did not used to make a very big difference. These days, however a lot has changed, and even in the hard money area, your credit score is playing a larger role in lending decisions.

Most people are not well informed at all when it comes to the factors that determine their credit score. Here is a fast cheat sheet on credit score factors:

Thirtyfive percent of any credit score is derived from how you have made payments. This is the largest chunk of the credit score factors, and the newest information is weighted the most. The items that make up this category are

• Repossessions
• Bankruptcies
• Judgements
• Tax Liens

30% of your credit score relates to your accounts owed. Credit cards, mortgage loans, car loans, equity lines of credit even installment loans all factor into this part of your credit score.

fifteen percent of your credit score results from how long your credit history is, how long your various accounts and debts have been open in other words.

Ten percent comes from recent activity. Getting your credit run falls under this section.

Finally, the last of your score comes from the kind of credit that you have utilized.