Basics Three important factors in your credit are:
- How many credit lines you have
- How close your credit lines are maxed out
- Length of time the credit lines have been opened
Your credit lines are also grouped into three categories – current, closed, and delinquent lines. Current credit lines are ones that are open now and have never been late.
The closed lines are credit lines that have been closed and are no longer available to the borrower (these may be closed by the lender or by the borrower).
The last category is the delinquent one, which list open credit lines that are late by 30 days or more or have gone to collections.
Maxed Out Credit Lines Your credit lines are usually listed individually on your credit report. The listing usually includes the maximum available limit for credit cards. If you are too close to your limit on many of your credit cards this will have the affect of lowering your credit and will make approval by mortgage lenders harder.
Length Of Time Credit Opened Generally speaking the longer you have maintained credit lines successfully the better mortgage lenders will view you.
If you have several years of maintaining your credit lines without being late you will be shown to lenders to be a borrower who knows how to manage their credit.
Many mortgage lenders have additional new problems that allow borrowers with limited credit to still apply for a mortgage. You don’t need to have a long credit history any more to get a mortgage.
Further Advice You can do more research online about your credit, how it affects your mortgage, and available loan types.
Even when you have problems on your credit you may still be able to get a mortgage or a refinance.
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Article Source: http://EzineArticles.com/?expert=Ben_Afzal
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