Hard Money And Credit

Today I’m going to take a brief look at the factors involved in calculating your credit score. When dealing with hard money lenders, your credit score did not used to make much of a difference. In the market today, on the other hand, things have changed, and even in the hard money realm, your credit is playing a more prominent role in lending decisions.

A lot of people are not well informed at all when it comes to the factors that determine their credit score. We have made a quick fast overview on credit score factors:

35% of the credit score comes from payment history. This is the largest chunk of your credit score, and the newest reporting is the most important. The items that fall under this general category include

  • Bankruptcies
  • Collections
  • Repossessions
  • Judgements


The next largest chunk of your credit score is derived from accounts owed. Credit cards, home loans, car loans, lines of credit and also boat loans all factor into this part of your credit score.

15% of your credit score is a result of the length of time your credit history shows, how long your various credit cards and other loans have been open in other words.

10% comes from new activity. Having your credit run falls under this section.

Finally, the last ten percent comes from types of credit that you use.
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