Your Credit
How important is your credit score? If you want to borrow money, it can mean the difference between an affordable option and no option at all. If you buy a house or a car, or your child is applying for a credit card for the first time, chances are a lender will request a credit score before making a decision.
A credit score is a number, based strictly on credit history, created to help creditors weigh the risks they take when they loan money. Your credit score determines whether you can get credit and your interest rate. Higher numbers look better to lenders and many times, those with higher scores get lower interest rates. Your score plays a vital role in most borrowing situations, so it’s important to understand what goes into it.
How Does It Work?
Credit scoring is a statistically based prediction of how likely it is that a borrower will repay a loan. It can either show lenders that you are low risk or raise red flags that you are a high-risk borrower.
When you manage your credit responsibly, your credit score goes up over time. A strong credit history will give you a strong credit score.
Your income does not directly affect your credit score, but it does affect your ability to qualify for a loan. You could have a low income and a high credit score, or a high income and a low credit score. It just depends on your credit history.
No Credit Score Lasts Forever
It changes over time as your credit maintenance changes. Depending on a variety of factors, your score can go up or down at any time. In fact, every time you apply for, use, make or miss a payment on a loan or credit card, you add on to your credit report and either raise or lower your score.
What Goes Into Your Score?
A variety of factors in your credit report make up your credit score:
Your payment track record.
The amount of debt you owe.
How long you’ve used credit.
The number of recently opened accounts and inquiries made by creditors.
The types of credit you currently use.
Fixing Bad Credit Scores...
This is where we can help you. If you have a credit score that is preventing you from securing financing to buy a first home or buy a car or to simply obtain a credit card. Our team understands how important a good credit score is to your financial success. There are ways to improve your score, remove bad credit reporting and more… Reach out to us today for a Free Consultation so that we can help you get your credit score up to where you want it.