Learn all about the impact of mortgages on your credit score! Discover why having a mortgage can boost your credit score and how FICO views mortgage holders compared to renters.

Main Takeaways:

Getting a mortgage can increase your credit score by 25 to 50 points within a month.

FICO prefers to see a mix of credit types, including 3 credit cards, installment loans, and mortgages, for maximum points.

Mortgage holders are perceived as more financially secure by FICO, leading to higher credit scores.

FICO prioritizes payment consistency over the balance owed on mortgages.

Questions Answered:

Elaborate mortgage credit impact?
Answer: FICO considers mortgages as a sign of financial stability and rewards mortgage holders with higher credit scores.

Do you think that someone with a mortgage is more financially secure than someone who rents?
Answer: FICO has determined that mortgage holders are less likely to miss payments compared to renters, leading to higher credit scores.

Why doesn't FICO care about the balance owed on mortgages?
Answer: FICO knows that most people move every five to seven years, so they prioritize payment consistency over equity in homes.

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