Is it time to fix your credit score?
http://www.articlesdirectory.us/articles/74560/1/Is-it-time-to-fix-your-credit-score/Page1.html
Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports.
By Stuart Hunter
Published on March 27, 2009
The current credit crunch presents amazing opportunities for those who are able to take advantage. People with high credit scores are reaping the rewards as prices and interest rates fall. Those with bad credit are left out unless they are able to fix their credit score.
Is it time to fix your credit score?
As is usually the case, even things as troubling as the current credit crunch have a silver lining. In the case of the credit crunch, the silver lining is that prices for big ticket items are dropping. Plummeting interest rates with already decreased asking prices combine to make now one of the premier times in decades to purchase a home, refinance your existing home, or get a new automobile.
But there is a catch.
Not everybody can take advantage of this opportunity. Credit today is more difficult to come by, hence the term "credit crisis". After years of reckless lending practices and an unprecedented number of defaulted loans and foreclosures, lenders have had to become more conservative in their lending practices. Today, they are only willing to extend credit to the lowest risk consumers.
Lenders largely determine credit risk by looking at your credit score. A low credit rating tells them that you can't be counted on to repay your debts on time and maybe not at all. As a result lenders will deny credit to people they feel are too high of a credit risk, and charge higher interest rates to those who are an average credit risk to ensure they can still turn a profit even if a small percentage of those people default on the loan.
Today, lenders threshold for risk is far lower than it has been in previous years. A credit score in excess of 750 is now required by many lenders to get approved for a loan with the lowest interest rate and the best terms. A credit score lower than 750, and you have to pay extra. Too far below, and you run the risk of not being approved for loans at all.
But what happens if your credit score says you are a poor credit risk, even though you really aren't?
Credit errors, imperfect scoring models, and irrelevant negative credit information combine to give many people a credit score that is not indicative of their actual credit risk. They are dependable consumers who can be counted on to pay their bills, but their credit scores tell a different story. For people in this situation, fixing their credit score may be the best option for getting the credit score they deserve.
If your credit is holding you back, don't just sit back and wait for it to get better. You have the right to a fair and accurate credit score and there are things you can do to legally fix your credit. Take action today and you may even be able to benefit from the credit crisis.
But there is a catch.
Not everybody can take advantage of this opportunity. Credit today is more difficult to come by, hence the term "credit crisis". After years of reckless lending practices and an unprecedented number of defaulted loans and foreclosures, lenders have had to become more conservative in their lending practices. Today, they are only willing to extend credit to the lowest risk consumers.
Lenders largely determine credit risk by looking at your credit score. A low credit rating tells them that you can't be counted on to repay your debts on time and maybe not at all. As a result lenders will deny credit to people they feel are too high of a credit risk, and charge higher interest rates to those who are an average credit risk to ensure they can still turn a profit even if a small percentage of those people default on the loan.
Today, lenders threshold for risk is far lower than it has been in previous years. A credit score in excess of 750 is now required by many lenders to get approved for a loan with the lowest interest rate and the best terms. A credit score lower than 750, and you have to pay extra. Too far below, and you run the risk of not being approved for loans at all.
But what happens if your credit score says you are a poor credit risk, even though you really aren't?
Credit errors, imperfect scoring models, and irrelevant negative credit information combine to give many people a credit score that is not indicative of their actual credit risk. They are dependable consumers who can be counted on to pay their bills, but their credit scores tell a different story. For people in this situation, fixing their credit score may be the best option for getting the credit score they deserve.
If your credit is holding you back, don't just sit back and wait for it to get better. You have the right to a fair and accurate credit score and there are things you can do to legally fix your credit. Take action today and you may even be able to benefit from the credit crisis.