Are You in Credit Prison?

KCSHow a Low Credit Score Can Cost You

A low credit score hurts your ability to get loans, and raises the cost of credit when you can get it. Credit scores are also used for insurance rates, renting and even employment.

A poor credit score can cost you hundreds of thousands of dollars over your life. Enter in a FICO score and a Loan Principal below to see how much a poor FICO score can cost you on just your mortgage. If you are a home owner or looking to buy, raising your FICO score is the most important thing for you to do. A better score not only means lower payments, but can mean a bigger house, the chance to take out more money on a re-fi, or even the difference between being able to buy.

Your Credit Score Affects

  • Homeowner’s Insurance
  • Car Insurance Payments
  • Car Loan Payments
  • Personal Loans
  • Mortgage Refinance
  • Job Opportunities

Credit Score Basics

What is a Credit Score?

The majority of people understand the basics, like how failing to make a payment will cause your score to go down, but there are a number of complexities that trip up the average consumer. If you pay your debts on time, don’t carry too much debt on any one card, don’t close older accounts unless absolutely necessary and only apply for new credit when you have to you will generally be in good shape. However, it is important to keep yourself informed so you can maintain a credit score that accurately reflects your consumer status.

Lenders use your credit report in order to judge your reliability as a loan candidate. Your credit report indicates your ability to handle debt responsibly and will help banks decide if you are a desirable loan customer. A high credit score can help you lock in low APR rates or secure special deals on loans. A bad credit report may prevent you from securing loans and can damage your ability to buy a car, open a credit card or rent a home. A history of inability to manage your credit successfully will make lenders uncomfortable about trusting you with additional funds in the future.

You are entitled to a free copy of your credit report once a year, an offer you should take advantage of. When you do receive your credit report, check to ensure the figures are accurate and act quickly to correct any mistakes. This may include any clerical errors, identity theft issues or incorrect information. If your credit score is low, you should begin working on a financial rehabilitation plan, either on your own or with a certified debt counselor, to begin correcting your bad debt habits.

Carla is one of my “Trusted Vendors”. To get started, please feel free to contact Carla Capasso at 877-221-8085 or click her for more information.