What's it worth to you to have a good credit score?

What's it worth to you to have a good credit score? Credit scores do not reflect how you are living now or will in the future, it's a reflection on your past history

In the past I have talked about what not to do before you buy a home when going for a mortgage Mortgage 101 yet the importance of knowing where you are with your credit is crucial whether you are buying a home, thinking about buying a home, and/or simply late on paying your bills and wondering if it will affect you; and if you are not wondering, well, you can choose to be clueless or read on.

What's it worth to you to have a good credit score?

I had a conversation with Eric Stuerken of Better Qualified this week and it was such an eye opener I am sharing it here. BQ repairs credit, and you will get a free credit consultation and report. Eric knows his stuff and if you don't believe me, well he's the guy mortgage professionals send their clients to.

The world we live in is credit driven, it can hurt you buying a home, a car or really anything ( maybe even your dating prospects ;) ). Credit scores do not reflect how you are living now or will in the future, it's a reflection on your past history. Divorce, unemployment, even a judgment you may not be aware of or simply being careless that's what's going to get you. NOT having a credit history hurts you, too; if you don't use credit as you always pay with cash will make it difficult to get a loan, too, as the banks will have no indication of whether they will get paid back. Achieving a great credit score goes hand in hand with good financial habits.

Go to:

Better Qualified for a free report and/or credit restoration.

another legit safe site for a free credit report is:

Annual Credit Report is the only service authorized by Equifax, Experian and TransUnion for this purpose.

If you plan on buying a home in the near future:

Do not buy a car, change jobs, buy furniture, do not make large deposits into your checking account (monetary gifts) read Dan Green's How to Give and Receive a Downpayment Gift on a Home, and do not change banks (they want to see stability).

Eric made me aware even if you were late a few times on a bill years ago,( or perhaps your spouse or maybe an ex spouse ) canaffect your score, and what about *Zombie Debt?? Your credit history sticks to you like a gooey gum on the bottom of your shoe. Yes, it can be removed, yet with effort.

Your credit score is the most important number in your life. The higher the score the less risk the person represents.

* A type of bad debt that is so old a person may have forgotten he or she owed it in the first place. The debt has likely been given up on by the company to which it was owed. Zombie debt can haunt a debtor if a debt collector buys the debt for a low price from the company in attempt to recover the owed.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Solange LaBonne January 28, 2013 at 01:02 AM
Thank you Suzanne! Finding balance here is key to protecting your financial future. Contact the professionals and learn how to protect your credit esp if you are applying for a mortgage they can only help!
Chris Clement January 28, 2013 at 10:53 AM
Author writes: "Your credit score is the most important number in your life." Story is sorely lacking. Doesn't explain what credit score number would be a bad, good or excellent. This would be helpful to those that don't know.
Suzanne Welch January 28, 2013 at 11:51 AM
Chris, thanks for the comment. Blog posts need to be a certain length, there is only so much space we are allowed, though there will be part 2 to blog. For your knowledge, though 720 is a good score, a minimum score needed to qualify for certain purchases requiring a "good" or "excellent" credit varies by the bank or issuer. You can get a mortgage with a lesser score, but with a higher interest rate. I hope this helps!
Paul Oster January 28, 2013 at 03:10 PM
As the CEO of Better Qualified, I would like to thank Suzanne for this blog. Well done and concise information. I would also like to offer anyone a free credit analysis so, they may put an action plan in place to improve their scores.
Liz Claire January 28, 2013 at 06:54 PM
A credit score is an objective historical review of how you have used credit in the past. There are 3 companies that go through your financial history and come up with a score that banks and lenders use to determine whether or not to extend credit to you, and if so, on what terms. Here is a translation of what the scores imply. 726-830 = Very Low Risk, Excellent Credit Quality – Best Rates 700-725 = Low Risk, Good Credit Quality - Good Rates 626-699 = Medium Risk, Fair Credit Qualilty – Average Rates 551-625 = High Risk, Below Average Credit Quality – Likely High Rates 330-550 = Very High Risk, Poor Credit Qualoity – Unlikely Youll Get New Credit There is very little you can do to change your past. If you have scars, you have to wait till they fall off your report, which is a matter of time, depending on what your issue is. At best, you can attach a written explanation to your report, but that’s kind of like telling the teacher “My dog ate my homework”. Time heals all financial scars, provided you keep your credit clean henceforward.


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