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THE IMPORTANCE OF CREDIT
Your credit score plays an impacting
role in many areas of your life.
Consider the following scenario....you've
located a new home that is ideal for your
needs. Not only are all the amenities that
the house has to offer exactly what you
want, the local neighborhood is nice and the
schools are great.
You have
made an offer on the house and it has
been accepted. You begin the closing process
by opening an escrow account.
You then get a call from your mortgage
broker, informing you that you do not
qualify for the interest rate you were
quoted last week. The reason is issues with
your credit score. Specifically your credit
score is too low. As a result, your interest
rate is going to be 1.5% higher, resulting
in an increase of $500/month on a $200,000
loan!
What are you going to do? You can not afford
to live in this house, and even worse, you
are going to lose the nonrefundable deposit
check you wrote. This is all a result of
having a low credit score! Learn more about
credit and mortgages.
Buying a home is one of the largest purchases
you will ever make that is based on your
credit. However, buying a home is not the
only instance when your credit is a factor.
There are many instances when your credit
will pay an impacting role. For example,
credit will influence your chances for
renting an apartment, getting a
car loan and
applying for a credit card. Your credit will
even influence that
auto insurance rate you
receive or the job you get. Learn more about
who looks at your credit report.
In conclusion, whether you are going to buy a
new home, car, or get involved with anything
where credit will play a factor, it is
important that your credit score is
optimized.
Learn what you can do to build
your credit history.
Read more about the
value of credit.
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