We live in a culture where credit is key, as the need for good credit impacts on countless areas of our lives and although we think about credit, we do not always pay keen enough attention to it, and so we end up paying dearly for it later.If you are thinking about acquiring a home, or making any major purchase for that matter, credit is key. Know your credit score; know what's on your credit file. State and Federal laws allow you to request your credit report once a year for FREE from the "big three" credit reporting agencies - Equifax, TransUnion and Experian. Do not wait until you are ready to make that home purchase; sitting in front of your mortgage broker to get pre-qualified only to hear that your scores are so low, you can't even buy a bicycle.
Credit is key, pay attention to your credit and your credit history; otherwise you could pay a much higher price later.
As an example, new FHA guidelines require a new borrower with a 580 credit score to make only 3.5% down payment on their home purchase, on the other hand, a score below 580 will require down payment of at least 10%. Wouldn't you rather pay the 3.5%?
So paying attention and taking care of that credit definitely makes good sense, after all in this culture, without doubt credit is power.
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I always have had a great credit score, Last year I decided to cut up the cards. I then called all of the cards and cancelled them. that small act lowered my score to 350. I have never missed a payment but because I cancelled the cards then my avaible credit line was also decreased.
ReplyDeleteso lesson is just cut up the cards. dont cancel
Great advice Julia, a lot of people are not aware of this. Such an act is so detrimental. Thank you so much for sharing.
ReplyDelete