Credit Mix and New Credit in FICO Scores

When you’re buying a home with financing, lenders are going to look at your FICO score. Two important parts of that score are your mix of credit and the amount of new credit you have. Here’s the scoop on credit mix and new credit in your FICO score.

FICO Score Breakdown

FICO scores are calculated based on your payment history, how much you owe, how old your credit history is, how much new credit you have, and types of credit you have. It’s approximately this way:

  • 35% payment history
  • 30% debts you owe
  • 15% length of credit history
  • 10% new credit you’ve obtained
  • 10% the types of credit you have

Credit Mix

Credit mix refers to the variety in types of credit accounts you have. You need retail accounts, credit cards and installment loans (like car loans and mortgages).

New Credit

New credit refers to your recently opened accounts. If you’ve opened several new accounts within a short period of time, your scores go down because you appear to be a repayment risk.

Are You Buying a Home in Irvine?

If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for your needs (and your budget).

Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.

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