Low Credit Score in the New Economy

By: M.Anthony Bustamonte

Recent statistics show that 60%+ Americans acknowledge that their knowledge of credit
is poor, current poll shows that 43+Million Americans have fewer than a 599 credit
score. An additional study shows that 80,000,000 Americans don't even understand what their
credit score is and 60,000,000 Americans confess to not paying their bills on time
at one time or another.

So what can be made to help with this emergent problem? Education! Education is
the key for consumers to embark on the path back to recovery. Knowing how credit works
and what your existing credit state is, is really the key to improving your
credit. Once you identify with how credit works and what your up to date credit status
is, applying certain strategies and disciplines will be necessary. This in many
cases will require a collective effort by the household to make for certain these steps
are followed and monitored.

One thing to understand is that your credit score is like raising a child, the
more good substance you put in, the better it will turn out. With payment history
being the #1 component to calculating your score you fancy to make sure that
you're steady in making your payments on time. It is always best to set up
an "auto pay" directly from your bank account. Another major component is your
debt to credit ratio. Keeping your balances at no more than 30% of the permissible
credit balance can really have a major impact on your scores.

We believe that credit awareness is on the escalation in this country. It's almost
not possible to watch TV and not see an advertisement about credit. Experian,
TransUnion and Equifax all promoting credit monitoring systems for a monthly fee.
These systems can be helpful but in most cases not mandatory nor do they provide
the type of proof that most consumers need today.

There are sufficient of companies that can facilitate you with your credit repair and
education, but just like anything else, make sure you do your due-diligence
before you pay a specialist service. There are very stringent federal guild lines
concerning credit repair and you want to make certain the company you are working
with is compliant. Hiring a company to support you with this process can assure that
your full rights as stated in the Fair Credit Reporting Act are being adhered to.

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Mark Bustamonte has been in the Credit and Debt Industry since 2003. Mark started out as a loan originator and Certified Mortgage Planning Specialist. To learn more about how you can improve your credit please visit How to Improve My Credit

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