Make the Most of the Credit Crisis By Fixing Your Credit Score
http://my-financialnetwork.com/articles/76114/1/Make-the-Most-of-the-Credit-Crisis-By-Fixing-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 03/27/2009
Today's credit crunch presents fantastic opportunities for those who are able to take advantage. Consumers with high credit scores are reaping the rewards as prices and interest rates fall. Those with low credit scores are left out unless they are able to fix their credit report.
Make the Most of the Credit Crisis By Fixing Your Credit Score
As is usually the case, even situations as concerning as the current credit crunch have a silver lining. In the case of the credit crisis, the silver lining is that the cost of big ticket items are dropping. Plummeting interest rates with already decreased prices combine to make right now one of the premier times in decades to buy a home, refinance your existing home, or get a new car.
But there is a catch.
Not everybody can benefit from this opportunity. Credit is more difficult to come by, hence the term "credit crunch". After years of irresponsible 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 able to extend credit to the lowest risk consumers.
Lenders largely determine credit risk by looking at your credit score. A bad credit rating tells lenders that you cannot be counted on to repay your debts on time and maybe not at all. As a result lenders will deny credit applications for people they feel are too high risk, and charge higher interest rates to those who are a moderate credit risk to make sure they can make money even if a small percentage of those people default on the loan.
Today, lenders threshold for credit risk is much lower than in previous years. A credit score in excess of 750 is now required by many lenders to get approved for loans with the best 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 being denied for credit altogether.
But what happens if your credit rating says you are a poor credit risk, even when you really aren't?
Credit errors, flawed scoring algorithms, and irrelevant credit information combine to give many people credit scores that are not indicative of their actual credit worthiness. They are responsible consumers who can be counted on to pay their bills, but their credit reports tell a different tale. For people in this situation, fixing their credit may be the best option for getting the credit rating they deserve.
So if your credit score is holding you back, don't just wait for things to improve. 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 benefit from this opportunity. Credit is more difficult to come by, hence the term "credit crunch". After years of irresponsible 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 able to extend credit to the lowest risk consumers.
Lenders largely determine credit risk by looking at your credit score. A bad credit rating tells lenders that you cannot be counted on to repay your debts on time and maybe not at all. As a result lenders will deny credit applications for people they feel are too high risk, and charge higher interest rates to those who are a moderate credit risk to make sure they can make money even if a small percentage of those people default on the loan.
Today, lenders threshold for credit risk is much lower than in previous years. A credit score in excess of 750 is now required by many lenders to get approved for loans with the best 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 being denied for credit altogether.
But what happens if your credit rating says you are a poor credit risk, even when you really aren't?
Credit errors, flawed scoring algorithms, and irrelevant credit information combine to give many people credit scores that are not indicative of their actual credit worthiness. They are responsible consumers who can be counted on to pay their bills, but their credit reports tell a different tale. For people in this situation, fixing their credit may be the best option for getting the credit rating they deserve.
So if your credit score is holding you back, don't just wait for things to improve. 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.