|
 In today’s society Credit Rules Everything Around Me! CREAM or MYTH?
Written by: Troye Downs, CEO, Improved Credit Results, LLC
Living life without credit can be compared to living without air in today’s world.
Credit, is the ability to use other people’s money for your benefit and pay a fee for using their money. It simply means, do you keep your word & it answers the question “do you make promises that you can’t keep? With our current economy, it’s challenging for everyone just to stay a float.
Managing your credit is a numbers game. Your credit history plays a huge part in accomplishing this task! You must be well informed about the disinformation that is floating around. Here is a great example of the disinformation that many people question:
Question: If a creditor pulls my credit “I will lose a lot of points?”
Answer: No, the maximum that you will lose is zero to seven points.
Here is an example of a damaging mistake:
A person goes to ABC Company to purchase an item. Looking for a lender, ABC Company has 20 (or more) different credit grantors pull their credit report. This can be damaging to your credit score because so many companies are pulling your credit report in a short length of time.
To avoid this problem use this advice:
1. We need to be better informed about Credit Myths.
2. Go directly to the specific credit grantor and research the guidelines, that way you will not need to have a third party pull your information.
3. Knowing what underwriters are looking for is the most important factor that will get you approved. Underwriters are looking for at least three positive trade lines or more. One installment loan, two to three credit line or revolving credit this is a huge part of your credit history.
4. When preparing to purchase a major investment such as a home, stay away from auto loans or smaller debt scenarios as this will hurt your debt to income ratio’s, which means you will qualify for less. Myth auto loans help in improve your credit but hurt you when applying for a mortgage. 5. When applying for a mortgage or any major investment, it is wise to keep your credit cards under 33% & have your installment loans less than 18 months to be paid off. This will not hurt your debt to income ratios.
Troye Downs is CEO of Improved Credit Results LLC. Troye Downs has been helping people with credit consultation for over 15 years. For more info, check out his website: http://improvedcreditresults.com/
|
