Many people don't learn that their credit reports are an issue until it's too late. They are passing time in the car salesman's office or chatting with a mortgage broker waiting for information about whether or not they are able to qualify for financing so they can drive off in a shiny new car or start making preparations to move into a new home. And then they get the news. Their credit is either too low to qualify for financing or high enough to get a loan, but the interest rate they get approved for is so high they are no longer able to afford the monthly payments for the new purchase they had set their hearts on.
Even when people know what their credit score is, they may be caught off guard when they learn how much higher of a credit score they need today when compared to just a few years ago. To get approved for a new home loan with the best interest rates and best terms, consumers need to maintain a credit score over 750. A credit score below 650 used to mean you would have to pay higher interest rates but today it could result in a flat out denial of credit.
It is embarrassing to find out your credit score is poor like this and cause for many people to give up hope. What is there to do when the negative items in your credit file can stay there for 7 years or more?
It is unfortunate that there are people who stay in this state of hopelessness because those who actively seek out help with their credit find out there are plenty of things they can do to try increasing their credit score ranging from better management of their finances to relatively aggressive credit repair strategies. Depending on their unique credit histories, people have been able to take a poor credit rating and increase it by tens or even hundreds of points in far less than 7 years. In some cases, people have seen their credit scores make a significant jump in a matter of months because they took the time to research the credit reporting system and put in the time to do something about their credit reports.
Your credit score is too important for you to take a passive role in its management. At the very least, everyone should know how credit reports are compiled, how their credit scores are calculated, and how credit rating is used. This foundation will be critical in making intelligent financial decisions.
Anyone who's credit score is less than they would like it to be should also learn what can be done to fix their credit and then take action by starting to work on improving their credit on their own or by receiving credit help from one of the many professional credit repair services operating today.
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For over 18 years, Lexington Law has been providing credit help to consumers looking to make the most of their credit score. Lexington Law is the trusted leaders in credit repair having served over 500,000 clients.
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