Monday, June 7th, 2010 at
9:15 am
Many people are perplexed about whether or not a really perfect credit score is necessary in order to get credit these days. Most of these people have been lulled into a false sense of security because in days gone by, people with bad credit would simply pay a higher interest rate.
The trouble is that fewer and fewer lenders want to lend money to people with bad credit scores and credit histories irrespective of the interest rate.
This means that without something along the lines of a perfect credit score or even an above average credit score you may not have access to any kind of borrowing options at all. Which in-turn means putting your dreams and plans for the future on hold?
There is a school of thought which says that it is almost impossible for the average person to achieve a perfect credit score. This is simply not true because you don't have to be wealthy to have a good credit score ratings.
It is just a question of being responsible in your use of the credit that you do have. People who have acted responsibly will be able to reap the reward in the form of better interest rates and cheaper borrowing.
Those who have a more cavalier attitude to their financial transactions will end up paying the penalty for their nonchalant outlook.
The best advice I can give is if you have a bad credit score then set up a plan to improve your credit rating. Pay your bills on a regular basis and on time. Don’t fall back on your payments – that’s will only lower your credit score even further. Show a commitment to improve your credit rating and everything will come right in the end and you achieve your goal of a perfect credit score.. It might take a little bit of time but you will reap the benefits in the long term.
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Thursday, May 27th, 2010 at
8:40 am
While there is certainly some small difference of opinion among experts, most financial counselors are agreed that it will be necessary for you to attain a 700 credit score or higher in order to qualify for a good interest rate on a loan.
It is possible to be rated somewhat less than this and still be considered a good credit risk. But, the 700 credit score level is way above average credit score that will almost certainly get you a better rate.
Do you know what your current credit score is? If you don't, you can get this information from many different credit bureaus online different. Once you know what your credit score is then you'll know just how far you are away from your goal.
Perhaps you have heard that if you can qualify with a 700 credit score or better, you will more than likely get a really good interest rate on any type of loan product. But, if you have a low credit score then you must increase your credit score as quickly as possible to reach the 700 level
The question is: what do you need to have in order to reach that high level?
Of course, you originally start out with a good credit score but it is the overall transactions throughout your financial transactions that affect how your credit score if formulated. An impeccable payment history will help you reach your goal. But it is more than just your payment history that you will need. Your credit record will also need to be free from any claims and judgments of any sort.
If there are any serious blemishes on your records they should be removed at all costs. It is difficult, but not impossible to reach this level, if you will truly work at it. All your hard work will pay off in the long term because you will not only have the satisfaction of having a higher credit score but the confidence of knowing that all your credit applications will be approved and with low interest rates to boot.
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