How is Your Credit Score Calculated?

A credit score mirrors your financial history. This simply means how you have handled payments, debts and liabilities over a period of several years. It is important to know your credit score before applying for a loan, mortgage or a new credit card.

A credit score is basically a number based on a statistical analysis of the credit report file issued by any of the three major credit bureaus in the US – Experian, TransUnion and Equifax.

There can be a number of methods to calculate credit scores. The most widely known type of credit score is, however, FICO score, which has been developed by FICO (formerly known as Fair Isaac Corporation). Banks, mortgage lenders and credit card providers, all use FICO score to ascertain the financial capability of a borrower.

While a credit report is available for free (one free credit report every year from each of the three credit bureaus), the accessibility to your credit score is not without a fee, which is charged according to the FTC regulation. Generally, the FICO score ranges between 300 and 850, and a score over 600 is considered good, and can make you eligible to apply for loans at most lenders.

Income is not considered when calculating a credit score, but there can be several factors that can affect it. While it is not possible to exactly determine the way how it gets calculated by the credit bureau, we know about some components that make up a credit score.

• Payment History (35%): Make payments on time and avoid things like late payments and bankruptcies to maintain a clean payment history.
• Debt Burden (30%): High credit limit and low amount of debt can be the key to a good credit score. Pay special attention to credit card debt to limit ratio.
• Account History (15%): The older your credit account, the better is your score.
• Types of Credit Used (10%): Having a mix of different types of credit accounts, such as credit cards, mortgages and personal loans, can be quite helpful.
• Credit Inquiries (10%): Don’t apply for loans at too many lenders simultaneously. More lenders mean more credit inquiries, which can adversely affect your credit score.

Bank of America Home Mortgage Loan and Customer Service

Buying a new home can be the ultimate gift that you can offer your spouse or family, but it takes some hard earned money and a little bit of knowledge of the prevailing housing market to get the best deal. Today, there are hundreds of banks and lenders offering a huge range of finance and mortgage options to go for when looking to buy a new home. Leading banks such as Bank of America and Chase Bank are some of the top mortgage providers in the country and you can get mortgage loans at competitive rates from them.

Bank of America Mortgage Loan can prove to be the financial assistance that you are looking for to buy your dream home. Even if you are new to the housing and mortgage industry, the bank can help you crack a good deal with rates tailored to your needs and affordability. Bank of America mortgage loan comes in 30-year fixed, 15-year fixed and 5/1 ARM (variable) terms with interest rates and APR specific to each term. The current rates for 30-year fixed is 4.125%, for 15-year fixed is 3.375% and that of 5/1 ARM (variable) is 2.875%.    

An interesting and reliable thing about Bank of America is that they provide the best of customer service, particularly when you are determined to go a long way with them. For instance, you can call at 1.866.466.0979 and talk to customer service executives of the bank to check for qualification. The bank also offers an interactive website that can help you make online qualification application. All you need to do is fill up an online form by providing some details. 

On the other hand, managing your mortgage account has never been so easy. You can sign on to online banking and view mortgage statements, set up account alerts and make mortgage payment from the comfort of your home. Browse http://www.onlinebankinfo.com for more information on Bank of America mortgage rates, personal loans and customer service number.