How credit scores are calculated

home on a stack of cash

Today we have guest content provided Michael Timmons, NMLS# 894265, Mortgage Officer with Gibraltar Mortgage Services.

When you check your credit score, you get a number, usually between 500 and 800. But what does that number mean? What is weighed to come up with that number? Here are some facts about how your credit score is calculated.

  • There are 5 factors that are used to come up with the number you know as your credit score. 35%-Payment History, 30%-How Much you Owe, 15%-Length of Credit History, 10%-New Credit, 10%- Credit Mix.
  • Payment history is a heavy hitter here! Demonstrating on time payments is critical for good and above average credit scores. Multiple late payments especially in reference to a mortgage loan, can be extremely hard to fix down the line. That is why on time payments are so important.
  • The amount you owe is also a heavy hitter. Did you know: when it comes to revolving credit (aka credit cards), your balance to limit ratio shouldn’t be more than 30%. When you allow the balance to go over that 30%, your score will be affected! Low balances=better credit scores.
  • Length of credit history is sometimes something you cannot help, so it is weighed less than the first two. Young credit isn’t necessarily bad, it’s just young! Someone who is older and has lots of history can be approved quickly. Whereas younger credit, may require a co-signer or guarantor.
  • When it comes to new credit, the amount of new accounts opened is being referenced. Sometimes, multiple new accounts in a short period of time could be viewed as a risk! That is why it comes into play here.
  • Credit mix means just that. Having a well-rounded credit report means having a bit of everything. Revolving credit, installment loans, a mortgage, line of credit, all of these would be a part of a well-rounded credit report. Showing creditors that you are able to handle all kinds of credit is important to proving that you will present minimal risk.

In conclusion, your credit score is important in 2018! And building good credit is a lot easier and faster than fixing bad credit. Understanding why this number matters and what goes into creating your credit score is the key to making sure you are able to borrow what you want (and sometimes need) without issue.

A big thank you to our guest contributor Michael Timmons, NMLS# 894265 Mortgage Officer, Gibraltar Mortgage Services.  Give Michael a call  if you have Mortgage questions at 281-364-7879 or email him at

I look forward to helping you to… LIVE LIFE TO THE FULLEST, Scott Culberson, Broker Associate, Better Homes and Gardens Real Estate Gary Greene,, 281-467-4691




Every night we recharge our batteries for several hours.  No distractions, usually pretty quite and mostly dark.  While this time is important for our minds it is equally important for our bodies.  Comfortable pajamas, soft sheets, maybe a fan overhead on low all help in taking us to dream land.  Do we dream of our wants and desires or run from our insecurities and fears?  I hope we are all shooting for the happy dream and leave our worries on the night stand.

So I am writing in February and I hope that you are dreaming of how to make this Valentines day a special one for your loved one, children or grand children.  No, I’m not going to spin this as a Real Estate Commercial so get that our of your mind now.    I’m looking to help you make your reality better than your dreams.  Take the time now to plan for the future (Valentines day).  A thoughtful gift or gesture cannot be acquired on a whim.  thinking deeply about the one you love and their needs and desires take time.  You could take it a step further like I have…..

In my phone I have a tab in my notes dedicated to gifts.  Nothing fancy, it’s not a special app, I just have a section for Wife, Child 1, Child 2….they each have their own special place.  Throughout the year I take notes on their wants and desires.  It might be laughing about a T.V. commercial, a reaction to a new desert or comment I heard about something they would like to do better.  I compile these notes and use them for birthdays, Christmas and yes Valentines day.  Don’t get me wrong I will always buy chocolate but adding a picture frame with a photo from the trip to the zoo or smore flavored jelly, well those can be the gifts that are remembered for a life time.  After all who wouldn’t enjoy smore flavored jelly?

Happy Valentines day!

You CAN Live Life to the Fullest,

and I can help,



2017–The Year of the BROKER (aka The Year to START Living LIFE to the Fullest)


Is to too late to say Happyyyyyyyyyyyyyyyyyyy New Year?  I hope you have hit the ground running and are doing everything necessary to LIVE LIFE TO THE FULLEST!!!

I would like to share with you a major accomplishment in my career as a REALTOR.  On December 20th, I completed the final step to become a Real Estate BROKER.  I took the additional classes, cataloged the past five years of real estate transactions for the Texas Real Estate Commission and have passed both the National and Texas Broker tests.  I have elevated my license to the highest level and with that comes additional knowledge and experience for each of my clients.

That’s all for now.   Your referral is the greatest compliment and will always be followed with a BIG THANK YOU and a gift.

No pressure, no worries, just results that help you to rest assured that you will have the most trouble free and pleasant experience whenever it is time for your next real estate transaction.  I pledge to continue to deliver the highest levels of service to you, and to any of your friends or colleagues that you refer to me for assistance.  Thank you again for your trust and support over the years and here’s to a continued working relationship in the future.

Call (281-467-4691) or email ( and let’s get started on YOUR Real Estate dreams, because…..

You CAN Live Life to the Fullest

and I can help,