Credit score

A credit score is a number assigned to you to represent your creditworthiness. Lenders use it to determine how likely you are to make on-time payments on your loans.

Different credit scoring models calculate credit scores based on a variety of factors. Mint utilizes the VantageScore model, which measures credit on a scale ranging from 300 to 850. Your VantageScore is determined by six factors:

– Payment history

– Age and types of credit

– Credit utilization

– Total balances and debt

– Recent credit inquiries

– Available credit

While there’s no single way to define a good credit score or bad credit score, VantageScore does provide guidance on grading score on a scale of A to F:

– Grade A: 781 – 850

– Grade B: 720 – 780

– Grade C: 658 – 719

– Grade D: 601 – 657

– Grade F: 300 – 600

How do I improve my debt to income ratio?

Improving your debt to income ratio means lowering the percentage. Paying off your debts such as loans and credit cards, and increasing your income will help you achieve this.

Why should I wait to buy a home?

There are a few reasons why it may be wise to wait to purchase a home:

– More time to save for a down payment

– Build up your emergency fund

– Build credit score

– Wait for better market conditions (lower interest rates, better home prices if market is declining)