How Does Credit Work?

When you borrow money, whether through a revolving account (credit cards) or an installment account (auto loan or student loan), this information is gathered by credit bureaus. The data the bureaus have in your credit files is used to calculate your credit scores. Your credit scores are determined by five major factors:

  • payment history - 35%

  • your debt usage - 30%

  • age of credit accounts - 15%

  • types of accounts (credit) - 10%

  • the amount of inquiries on your credit - 10%


These scores are then used to determine your risk factor for future loans. The three-digit score is a numerical representation that indicates how risky a borrower you are from a lender’s perspective. A higher credit score can help improve the terms and conditions you qualify for. For example, your credit report and/or credit scores impact the types of credit offers and interest rate you will receive when you buy a home, finance a car, rent an apartment, apply for a job, buy insurance, purchase a cell phone, or open a new credit card.  The better your credit the lower interest rates you can receive.


The following are some ways to improve your credit or keep your score high:


  • Make Payments on Time, especially credit cards and installment accounts

  • Keep or pay credit cards balances down to 30% or below of credit limit

  • Keep credit inquiries to a minimum, by not applying for new cards or accounts

Credit Improvement/Repair Program

We work with a number of Nationally and Locally recognized credit companies that we have selected to assist your efforts in improving your credit, if needed, to qualify to purchase a home with the best rate your credit score will allow.  To start this process and receive the special rates and rebates we offer to our home buyers needing this assistance you will need to start the process with us.  Please contact us and we will help you select the best fit for you and get the process started. 

Authorized Real Estate + Credit Professionals:

NCC - National Credit Care


Heather Cantwell
Senior Credit Analyst

English Only



Natalie Baez

Director of Broker Relations/Bilingual Department

Spanish & English

Web Site:

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