Credit Score ArticlesWhy Do I Need to Have an Excellent Credit Score?Tip! Thoroughly review your credit score for errors or outdated information. Quite often, certain lending institutions are not due diligent on updating old information. Everyone wants to live the American dream—only to find that it comes with a price tag. You want that dream house, that great car, that wonderful living room set… or maybe you want to remodel your home or set up a personal business. Whatever it your goal is, you need money, more money than you have in your pockets. And that means asking for a loan. To successfully get a loan, you also need to have a good credit score. Now, when I was younger, I never worried my head about my credit score. It was something I just didn't think of. My parents would simply give me advice such as "Always pay your bills on time" and "Don't get in over your head when it comes to finances." I did follow their advice, keeping my bills paid on time and so on. But it never hit me just how important it was to have a good credit rating—until I turned 24 and wanted to buy my first home, a condo. Increase Your Credit Score -fast! Save Thousands By Correcting Your Credit Yourself. Easy Step-by-step Instructions. I suddenly found myself talking to bankers and mortgage lenders, and all of them kept repeating a certain number that they would refer to as my "credit score." I was still quite young and so I didn't have a very long credit history, but one thing I had going for me was my good credit score, all thanks to following the advice of my parents. With my good score, I was able to get a better rate of interest than most people—but not as good a rate as someone with an even higher score. No doubt that in time, as my credit history became more established, my score would achieve a rating of "excellent." But I took comfort in knowing that my good credit score nevertheless saved me thousands of dollars. And if I'd been deemed a bad credit risk, I would have had to pay high interest! So what can you do to ensure a good or excellent credit score? Well, you can't go wrong with the wisdom of my old folks. Pay your bills on time! Late payments can only lower your credit score. You should also take care of your debt percentage—another significant factor in determining your credit score. Lenders will compare your debt to your income in determining if you have the capacity to maintain your payments. Even if you have always paid on time, having a large amount of debt will make it harder for lenders to place their confidence in you. Basically, the less you owe, the better your credit score will be. Therefore, you should minimize your outstanding debts before seeking to get approval on new loans. Tip! My credit score will drop if multiple lenders check my credit- If you contact multiple mortgage lenders shopping for the best interest rate within a couple of week period they are grouped together into a less damaging inquiry. In essence, they will look like one inquiry. Be sure to keep track of your credit score. Get a report on it at least once a year. If there is a mistake in your credit record, you could go from having an excellent score to a very bad one within months. So correct mistakes promptly. It can be a real bother, but it is essential if you want to maintain a high rating. So now you understand the importance of your credit score. Having a good score will speak of your responsibility and commitment to your creditors. And it will show everyone else that your parents taught you right.
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