Credit Scores And Getting A Loan
Credit scores are important. Perhaps you’ve heard that a countless number of times before now. So, what we will try to do is not just tell you the same old, same old; instead we will point you towards how it can affect an important, crucial aspect of your life.
Credit Scores and Getting A Loan
Everyone has a dream. It could be a house, a car, or maybe even starting your own little store. Not everyone may have the required hard cash to acquire the ‘dream’ right here, right now. This is where loans, mortgages, and lenders all come in. With a loan or a mortgage, you can buy your ‘dream’ now, and pay it back in instalments in the future. And this is where your credit score can make a BIG difference.
The difference lies in getting approved for a loan or being denied for the same. Consider this example: Tony is a well-heeled office executive who keeps a close watch on his spending. He regularly monitors his credit score, which is excellent. His financial report contain no issues with late payments, outstanding debts, or pursuit of new credit. When Tony wants a loan or mortgage to buy his ‘dream home,’ lenders will probably fall over themselves in offering one.
Now contrast this with another example: Tim is a casual worker. He does not take his financial reports seriously, often overlooking payments and accruing debt. His credit score reflects his attitude and is in the red zone. When Tim wants a loan or mortgage, lenders will think twice before offering him any assistance.
A Positive Score is Essential
There is a saying in the loan and mortgage industry that people with a poor credit score have more chances of striking oil in their bathtub than getting a loan approved. Part of it is based on fact. Lenders try and avoid those who have a FICO score that falls below 620. This alone should be a good enough reason to maintain a positive score.
The other advantage of a high score is that you become eligible to receive loans and mortgages at lower interest rates. A lower interest rate equals less money spent on repayment.
With the credit score playing such an important role, it is vital that you do your bit to keep it healthy and positive.
At Action Credit Repair, our experts will provide personalized credit consultation, an audit of your credit history, and offer solutions to all of your credit obstacles. Contact us today to speak with an experienced professional: Call 518-945-2299 or email [email protected].