Since credit scores have become such an integral part of our financial lives, it pays to keep track of yours and understand how your actions dictate the numbers. You should absolutely build, defend and take advantage of great credit regardless of your age or income.
Yet a lot of people still have doubts as to how credit scores work and why it’s important to make sure the information contained in your credit report is correct.
You can leverage high scores into great deals — on loans, credit cards, insurance premiums, apartments and cell phone plans. Bad scores can hammer you into missing out or paying more.
Money Magazine Article
I’m linking to an article from Money Magazine called How To Get Items Removed From Your Credit Report.
The article goes into great detail on on how to remove items from your credit report – as well as a specific explanation on the credit reporting system and what goes into it. I highly recommend that you take a look at it.
One of their recommendations is to hire a professional credit repair service – and I really believe that can be a good idea.
Money Magazine writes “when looking at the lifetime cost of bad credit, or if your report is riddled with inaccuracies, paying a reputable company…to help repair your credit is often a reasonable solution.”
Credit repair services can help you with the following items:
- Cleaning up credit report errors
- Disputing inaccurate negative entries
- Creditor negotiations
The Debt Rescue Network – Jennifer Amsbaugh
If you need to improve your credit score to qualify for a mortgage or earn a lower interest rate, I recommend that you reach out to Jennifer Amsbaugh at DNS and see what she can do.
Their program is designed for individuals and families struggling to pay debts while saving money for daily expenses at the same time. They have a particular methodology that has proven to be effective in improving scores.
Why Is Credit So Important?
It seems like those with good credit catch all the breaks when it comes to getting lines of credit. It’s easier for them to qualify, and they get lower interest rates.
Well, there’s a pretty good reason for it.
A person that has good credit has a low statistical probability of defaulting on a loan. Therefore, they are given a lower interest rate. A person with a lower credit score has a much higher probability of defaulting, therefore they are charged a much higher interest rate to cover the losses incurred by lenders by those who do default.
At the very least, your score will affect the type of interest you’ll pay on any type of loan, from home mortgages to credit cards. At most, a low credit score will seriously impact your ability to purchase a house or a car.
If you have more questions about your credit and how it impacts your ability to finance a home, please do reach out to me, as it would be my pleasure to help!