Credit Score Restoration is Important in this Economy
Recently I caught a newscast that went into detail about why a good credit score is important in today’s economy. I know what you are thinking, isn’t a good credit score important in just about any economy? Of course it is, however, with banks and every facet of or economy tightening their belts, just about everyone wants to run your credit for items that no one even considered checking a credit score for in the past.
Credit Cards If you still have good credit, you may have noticed most of your limits have been lowered or the constant flow of creditors offering to consolidate all of your credit cards has dropped to a trickle. Since banks are less likely to raise your credit limit, you could show a higher debt to income ratio that will lower your score just due to keeping your balances at your current level. In the past, your credit limits would be raised nearly without asking which would in turn lower your debt to income ratio and raise your credit score. Not so anymore, so keep those balances in check. One card dropping your limit affecting your score can create a domino effect against your other credit lines.
Consumer Credit If you want to buy consumer items like electronics, furniture, computers on credit think about the effects on your credit score. First consider only applying for this type of credit only once or twice per quarter. If you do apply and get accepted for the offered credit lines try and take advantage of some kind of no interest 90 day type account. If you can, make sure it is a revolving line of credit rather than an installment loan, this will leave you with an unused line of credit as of the day you pay the loan off. Leaving you more unused credit on your credit report will in turn lower your debt to income ratio and raise your score.
Housing Landlords for home rentals and banks offering loans to buy houses are running scared. They have all been burned, even by people who had 700 and 800 credit scores over the past 2 years. So contradictory to what you might think, home loans and home rentals both have become decidedly harder to obtain without good credit score restoration to keep or raise your score to at least 680 in most cases. Granted their are a few areas in the country where housing has been hit the hardest where landlords understand, just don’t try moving from one of these areas to an area that was not affected as you may get the cold shoulder if your credit score has dropped below respectability.
Mick Bernard is a Credit Consultant from Scottsdale, AZ. His company Credit Strategies is helping consumers clean up their credit nation wide. If you need Credit Score Restoration Help we recommend looking into our Credit Repair Program.
Article from articlesbase.com
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