Part 3:
As part of series of articles (blogs)
regarding Credit and Credit Score, here we
start:
In today’s tough economic times, where every
person is being characterized or judged by
his/her number (credit score), having a good
credit score is essential to enjoying an
appropriate standard of living. You need to have
good credit just to rent an apartment, rent a
car, open a bank account, get auto and home
insurance, get a job, buy a car or obtain a home
mortgage.
Having good credit is more important in today’s
economy than ever before. Just a few points on
your score can keep you from getting a home
loan, auto loan, or even a credit card.
Depending on your credit, you could be denied a
loan, offered a normal interest rate, offered a
loan with higher than normal interest rate
and/or one that requires you to put more money
down. Like most cases in finance, those who are
considered “low risks” get to pay the lowest
rates.
To the mortgage lenders, your credit score
represents your likelihood of making on-time
mortgage payments for the next couple of years,
based on your recent (e.g., last two years or
so) payment history. Therefore, it is very
important to have a good/excellent credit
history and credit score.
Many of us, however, have experienced credit
problems through no fault of our own due to job
loss; medical bills, identity thefts, funeral
expenses, home & auto repairs, business failure
due to local, national and international
economics, stock market crash, depression and
recessions. Other contributing factors such as
expensive legal fees and divorce can all create
devastating credit problems.
However, just because you have a poor credit
history or credit score, doesn’t mean it will
last forever nor will you be penalized for all
your life. There is something you can do about
it. You should take appropriate actions to
establish/re-establish good credit and improve
your credit score.
In order to establish a good credit history and
improve your credit score, first you need to
know what a credit report and a credit score is
and what it is made of. This book provides this
information and shows you why your credit score
is so important, and finally it provides you
with many tips and tricks on how to improve your
credit score.
CAUTION:
There are many companies that will charge a
substantial amount of money and promise you to
“remove”, “repair” or “fix” negative information
from your credit report and improve you credit
score. Be aware that no third party person or
company can legally remove valid negative
information from your credit report permanently.
SOLUTION
The key point is that you need to know what is
on your credit report, legally remove inaccurate
or obsolete information from your credit report,
understand how credit scores are generated and
how they can be improved.
HOW to overcome the problems with your credit
history and credit score?
Knowledge, education, awareness, practice and
discipline are the essential keys to being
successful on any subject. The book,
"Credit Score Tips and Tricks",
provides you information, tools, techniques to
educate yourself and manage your credit report &
credit score, and therefore manage your finances
effectively at no additional cost.
I have decided to bring and share with you,
chapters or sections of the book, as series of
articles here. This is the number 3 of such a
series.
I also created and manage a GROUP in ActiveRain,
Credit Reports and Credit Scores, Please
feel free to join and share your thoughts and
experiences.
