Staying On Top Of Your Credit Score
By Paul Esajian on November 15, 2013
If you have ever been rejected for a loan, you know the importance of a good credit score. Maintaining a good credit score is the key to not only receiving mortgage loan approval, but also low rates on credit cards and car payments. However, a recent study found that almost 80% of Americans find some discrepancy or inaccuracy on their credit report at some point. If you are not receiving periodic updates with your score, you will not find these issues until it is too late. Keeping tabs on your credit score will reduce the risk of inaccuracies that can be potentially harmful.
A score of 720 or above represents a good credit standing. Mortgage loan approvals start with the middle credit score from the three major credit reporting agencies: Equifax, Experian and Transunion. The difference between a 716 middle score and a 725 can make a huge difference in receiving approval and the subsequent rate. If you are looking for a 30 day closing and you find an issue on your credit, it could take several weeks to clear up. Unfortunately, it can prevent you from acquiring the house you want.
Even if you don’t think there are any possible issues, it is a good idea to get monthly updates from one of the three credit reporting companies. The sooner you notice something that is not right, the sooner it will be to fix. Anyone that has been a victim of identity fraud knows that it is important to keep on top of your credit score. Things can get messy real fast.
If you have old accounts that are paid off and still showing up as active, there are ways to get this updated. There are credit repair companies that will work with the credit bureaus to provide them with verification of payoff or updates. This can dramatically improve your credit score. They will not make a late payment go away, but they will help you resolve issues that truly aren’t yours. For a fee, they will work with you and hopefully help get your score righted without having to wait months for the accounts to update.
Anyone in business should know what their credit score is at all times. You never know when you may want to take cash out for a property and need your score to be at a certain benchmark. You also want your score to be high enough so that you can apply for credit in an instant and not have to worry about approval or taking an interest rate that you don’t deserve. This comes down to knowing what impacts your credit score.
Even if you pay everything on time, your score may not be as high as you think. Timeliness of payment is important, but availability of credit is almost just as important. If you pay everything on time, but are near maxed out on every account, your score will take a hit. These are some of the little things that you need to know regarding your credit. Talk to a local credit repair agent for the most accurate and up to date information regarding your credit.
It doesn’t take much to stay on top of your score. Things can change in a moment’s notice and you need to be able to act when they do. If your score is too low, you may not be able to take advantage of every available opportunity that comes your way.