Credit Scores - Understanding what they mean to you
In the past decade or so, there has been a tremendous �sales pitch� out there to
�know your credit score!� Again, another multi-million dollar operation by the credit
bureaus and others to sell you information that is basically useless, unless you
intend on making a major purpose such as a car or a house. Other that that does
anyone else really care what their credit score is?
To us, it is just another marketing tool by companies to make money from you for
some piece of useless information. That said let us explain to you what a credit
score is and how it affects you.
Credit scores range from a low of "300" to a high
of "900", a 600 point range. The median number in 2009 was
723, while a score of 620 seems to be the magic number when determining whether
or not you are �credit worthy or a risk� to lenders. Finally, a credit score of
550 or below is considered �risky� by most lenders and would require additional
information from a lender in order to qualify for a credit card or a loan.
One of the primary companies that issues credit scores is called Fair Issac. They
state that "Those agencies [Fannie
Mae and Freddie Mac], which buy
mortgages from banks and resell them to investors, have indicated to lenders that
any consumer with a FICO score above 620 is good while consumers below 620 should
result in further inquiry from the lender. Once you get into the higher levels,
lenders do not care how high your score is or is not.�
Here is why we are the Preferred Debt Relief and Debt Reduction service in America
- You can become free of credit card debt once and for all.
- You can receive immediate debt relief and no more creditor phone calls.
- We negotiate and settle your debt on your behalf.
- 15 years of helping hundreds and hundreds of clients across America.
Please call us toll free at 800-890-6658 for a Free Debt Relief-Debt Reduction Consultation.
Or use our Debt Relief Getting Started form.
Again, unless you are applying for credit or a major purchase, your credit score
is meaningless. However, good marketing by companies that sell you your credit score,
have made it appear that your score is the end all of your life.
Put simply, the higher your credit score, the easier it is to get credit and typically
at more favorable rates than other people. Approximately 90% of all of our clients
had high credit scores at one point in their lifetime. As a result, they were issued
more and more credit. Then, through no fault of their own, they fell into what we
call the �debt trap,� whereby you can no longer even keep up with the minimum monthly
payments on your debt any more. So we ask ourselves, �Did having a high credit score
help them, or hurt them in the long term?�
We suggest you not fall into the �credit score trap.� Do not worry about what your
score is or was. Work on getting out of debt first, and we assure you, your credit
score will take care of itself.
|
