Credit Scores are an important part of any person’s finances. Most people underestimate the power of a good or bad credit score and its implications on everything from your insurance rates to being able to buy a home. Here’s an example of how your credit scores can affect you that just happened to a client of mine. Two months ago this person decided to buy a home and got a pre-approval from their lender. Two weeks ago they found the perfect home and we wrote an offer on it that was accepted. During the underwriting process, the bank pulled another credit report. My client’s score dropped 3 points and knocked them out of being able to buy the home. Nothing changed but those 3 points. So now no home for them! Crazy!
Your credit score is being used more frequently for things such as home loans, equity loans, car insurance rates, employment acceptance, promotions, and any financially related transaction. Your credit score is becoming one of the most important numbers associated with your name. For better or worse, your credit score has great influence over your life.
So here we are. Like it or not it is what it is. Remember the saying keep your friends close and your enemies closer. YOU HAVE TO BE PROACTIVE! You have to know how to manipulate your score to improve it. The credit reporting agency will not tell you how to do this. Why not, you ask? Because every time somebody pulls your report they get paid. So as you shop around for a better deal on that car they make money. The lower the score the more most people shop around and the more money they make. They do not want you to have a good score. Follow the money, and you will see how this works.
Please note that I do not do credit repair. I recommend you use a professional credit repair company to work with. That being said there are some rules that I have learned about that will help you along the way:
1. Pay all medical expenses promptly. The other things that will hit your score very hard are medical collections. These collections can pound your score worse then an Iron Chef smashing a piece of meat with one of those metal hammers with little spikes. Get these paid off ASAP or set up a payment plan. Some hospitals will settle for this than what is owed. It never hurts to ask.
2. Make your mortgage payments on time. What causes your credit score to be hit the hardest the fastest? If you are late on just one house payment your score drops 100 points! That’s right, and if you have ever tried to bring it up it will only go up a few points at a time and over time.
3. Make your mortgage payments on time. What causes your credit score to be hit the hardest the fastest? If you are late on just one house payment your score drops 100 points! That’s right, and if you have ever tried to bring it up it will only go up a few points at a time and over time.
4. Pay all medical expenses promptly. The other things that will hit your score very hard are medical collections. These collections can pound your score worse then an Iron Chef smashing a piece of meat with one of those metal hammers with little spikes. Get these paid off ASAP or set up a payment plan. Some hospitals will settle for this than what is owed. It never hurts to ask.
Check back for more tips and articles to help improve your credit score. Credit repair is a process, so stick with it!
If you would like to make a comment, please fill out the form below.
