What’s a mortgage account? Can it only be a house/home/land?
Written By: admin on August 21, 2009
One Comment
Trying to build my FICO score and bought a credit report. In it, it stated that I don’t have "enough mortgage accounts" and that I should open different types of accounts. I’m trying to build my credit to buy a house! Are their other types of "mortgage accounts" small of homes/houses that I can buy relatively cheaply that will boost my score?
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Tags: credit report, FICO score, land mortgage, mortgage accountsTags: credit report, FICO score, mortgage accounts
No, a mortgage is a mortgage and that means you own property.
10% of your credit score is determined by the type of credit. This means that the scoring system should recognize that you have various types of credit…the main types are revolving accounts (like credit cards), installment accounts (like car loans and student loans), and mortgages (like when you buy a house). If you have two out of the three, you should be just fine. Keep paying your bills on time and your score will be excellent for a home loan.
Excellent luck!