This is the sixth post in a blog series on how lenders evaluate your credit score analysis as you’re applying for a home loan in Northern Virginia. So far, we’ve covered Part 1, Part 2, Part 3, Part 4, and Part 5.
Other Factors That Impact Your Credit Score Analysis
Other factors that are considered when applying for credit are your income, how long you have been working at a company, whether you own or rent a home and how long you have lived there, and how much you currently have sitting in your bank account.
If you have ever been a co-signer for another borrower, that also goes on your credit score analysis and will be considered as part of your outstanding debt. This means that, should that person default on payments, it will also reflect negatively on your credit report and you could end up paying off another person's whopping debt. Co-signing on a loan is something you want to be very careful about.
Making Minimum Payments
It’s no secret that carrying a balance on your credit account makes money for the creditor. However, lenders looking at your credit history tend to not like seeing months of minimum payments on your history. This tends to give the impression that you are stressed financially and are struggling to make payments, possibly even coming close to defaulting. While it's okay to pay the minimum amount every now and again, consistently doing so can be a red flag on your credit score analysis that you aren't able to make the full payment of your balance.
Read Part 7 in my blog series on how loan officers evaluate your credit score analysis.
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