A good credit score is attained when you are a responsible person paying on time. Not only that, the capability of the borrower to repay the loan is also a factor and it is vital in obtaining a mortgage these days. However, I have found that first-time buyers can have a lower score and still get a great rate on a mortgage.

The easiest way to have a good credit score is to avoid debt, while using credit responsibly over a period of time. The longer the period the better your score.  This is vital in securing any sort of favorable credit or loan terms. Credit scores are a reflection of financial dealings with lenders and/or creditors; a good credit score, therefore, will not only assure considerable savings on interest rates, it will also expedite the loan or credit approval process.

Banks, mortgage companies, apartment complexes, car dealerships, realtors, and even insurance companies can get your risk in a matter of a few seconds using the FICO score model that the bureaus use to determine your overall risk. Your score is so prevalent these days and critical to financial savings

Currently, the loan and mortgage market has tightened up significantly. Buyers with poor credit who could easily get a new car loan or new home mortgage a few months ago are now being turned away.

One of the best ways to get started down the path to good credit (or at least having some credit!) is to open a checking and a savings account. Many banks allow you to open up accounts before you turn 18, so try to do this

Even the highest FICO score doesn’t guarantee that you get what you want and the worst one may not prevent you from getting at least some sort of loan

Some experts estimate that as much as 50% of credit reports contain at least one inaccuracy. Thus, consumer advocacy groups recommend that you obtain a copy of your credit reports at least once a year to prevent fraud and to insure that your report is accurate

Most bad credit stays on record for at least seven years, a bankruptcy for ten. Anecdotal information indicates that nobody looks at the history that predates a credit disaster. Often, once an account is sent to a collections account, even if the balance is paid, the negative mark stays on the consumer?s account for at least seven years

This entry was posted on Tuesday, April 7th, 2009 at 2:18 am and is filed under Credit Repair. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.