Mortgage not paid off doesn't hurt credit score

The Beacon Journal

If you have a mortgage that has not yet been paid off, that isn't a black mark on your credit score.

Experian Consumer Direct, one of three credit agencies that analyze and score your credit, found the average credit score for consumers with at least one current mortgage is 716 -- better than the average 667 grade among people without a mortgage.

Credit scores rate your financial status on a scale of 300 to 800 (higher is better). Lenders rely on them to analyze credit risk and determine interest rates. The best interest rates are typically given to consumers with scores of 700 or more.

The open mortgage is viewed as another open credit line, according to Experian spokeswoman Heather Greer, and it shows investors that your credit history has qualified you for hefty lending.

But opening a mortgage does not guarantee improved credit.

Greer warns that your mortgage, like any other line of credit, could easily hurt your score if you are delinquent with payments.





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