All About Credit Scores

by DAVID GREEN JR

Your credit scores affect you more than you may think!When you are looking to purchase a home a good credit score can save you tons of money both initially as well as long term. Many lenders have reduced closing costs, lower down payments and lower interest rates for people with high credit scores. Folks with lower credit scores may have a hard time qualifying for a mortgage loan, are often only offered adjustable rate mortgages, and have to go through a much longer process to be qualified for a loan. For automobiles and other big ticket items, a higher score will give you lower interest rates and save you tons of money over the course of the loan. For instance, an auto loan for a borrower with good credit may only carry an interest rate of 5-6% APR. A loan for the same car for a borrower with bad credit may carry an interest rate of 13-15% APR or more. Many companies are now using your credit for things other than purchases. Some car insurance companies are basing your monthly premium partially on your credit score - the lower your score, the higher your premium. It is becoming more and more common for large corporations to use your credit score as a hiring factor.Credit scores range in number between 300 and 850. The higher your number score the better off you are. To keep your scores high, always pay your bills on time and pay down the total amount you owe.Always check your credit scores with all three bureaus at least annually. No one is perfect and that includes credit bureaus. There are three major credit bureaus - Equifax, Experian and TransUnion. The three bureaus are completely separate entities and do not share information. If you find an error on your credit report that adversely effects your score, you have the right under federal law to challenge that item on your report. The credit bureau has 30 days to decide whether that item should be removed. If a credit bureau refuses to correct a mistake, you can sue.Be sure to get copies of your credit report and inspect them for errors at least 5-6 months before you plan on applying for a home loan. Many times, an error can take months to clear up and you need to have a clean report with the highest scores possible before applying for your loan.For additional information and services on credit, credit repair, etc. visit www.gettingitdoneeveryday.com.David Green, Jr.