How your credit score can open and slam doors for you

There are many ways to get ahead financially: attend seminars where you share your credit cards with hundreds of other people, participate in financial assistance services that help you get a home loan or refinance your home, or transfer debt to one Credit card to another credit card with an introductory rate of 0% (which increases to 12% in six months).

The reason these methods don’t work is because when we implement these strategies, we’re not reducing our costs at the same time. Even if we make more money, if we don’t cut spending, we will continue to spend more than we have and go into debt. Manage yourself and your money. money is like food; we don’t just eat when we’re hungry, and we certainly don’t spend just when we need something.

Warning: Debt relief can hurt you. The company that forgives your debt can issue a 1099C, which means the amount forgiven will be added to your taxed income.

Where there is a will, there is another way:

Your credit rating (also known as your FICO or Beacon score) affects the interest rate you can secure. Credit scores range from 500 to 850. Where are you on the scale?

What’s in a number?

500 and under – you are in serious trouble

650 to 680 you will likely have trouble getting a loan and if you do, there will be higher rates

700+ – excellent score

How you got your credit score:

a) Payment history (35% of the score). Pay on time or early.

b) Amounts you owe (30% of the score)

c) Creditworthiness (15% of the score). The longer you have credit, the higher your score can be.

d) New credit (10% of the score). New credit cards.

e) Type of credit you use. Mortgages, Bloomingdale’s, etc.

There are three reporting services that can give you your score: Equifax.com, Experian.com, and Transunion.com. Do an experiment at least once and order a report from all three. They will probably produce one free report per person each year. You will most likely find inconsistencies in the reports, such as: B. Missing and incorrect information.

Every time a credit report runs on you, your score goes down by two or three points. You still want to look for a mortgage, but consider hiring a mortgage broker to do a report to take care of the loan. Going to five different banks can drop your score by 15 points.