Friday, August 27, 2010

Having Good Credit is More Important Now than Ever

Recent shifts in economic climate have led to a heightened sense of awareness in both lenders and consumers. Prior to 2007, those with near-prime and even sub-prime credit could easily get mortgage loans, auto loans, and other lines of credit. Today it is extremely difficult for those with sub-prime credit and sometimes even for those with just near-prime credit to obtain credit of any kind, negatively affecting every aspect of the individual’s life.
Paying off past due accounts most often does not, in itself, raise your credit score or change the way lenders see your credit report. Outdated information about you, late bills (depending on the creditor, these may be reported anywhere from 30-90 days after the payment is late.), and even uncontrollable events such as a recent change in address can hurt your credit. Financial counseling can be helpful in identifying problems and improving your credit.
The aspects of an individual’s life that are either negatively or positively affected by credit are vast, and having bad credit can evoke a chain reaction of financial hardship. Your credit affects your ability to finance an auto, obtain credit cards, mortgage a home, rent an apartment, to carry insurance, and even to get a job.
Loan or credit denials can be extremely inconvenient, and borrowing with sub-prime credit can be costly. Your FICO score, one aspect of your individual credit, can range from 300-850. In today’s economy, creditors frequently look to loan only to consumers who have credit scores over 700. Those with scores below 680 who do borrow for a home or auto will often spend an extra 1,000 dollars per year or more in order to borrow, as they are given less than prime interest rates. Financial Councling can be beneficial to repair credit before a large debt is incurred to reduce the fee of borrowing, saving the consumer money over the course of the loan.
Today, it is clearer than ever that individuals and business owners need good credit to thrive. Certain actions on your credit report can change the way the lender sees you, and these days the lenders are looking deeply into your credit history. It is important that your credit score and credit report are as optimal as possible. Credit Care Company professionals are experienced in helping to achieve good credit.

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