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Good Reasons to Monitor Your Credit Score

By
Mortgage and Lending with Clarion Mortgage Capital, Inc.

Do you know what's your credit score? If your answer is "no" this might be a perfect time to  check it. The big majority of consumers are not concern with their credit worthiness until they have to fill out an application.

The amendment to the federal Fair Credit Reporting Act requires each of the nationwide consumer reporting companies - Equifax, Experian, and TransUnion - to provide you with a free copy of your credit report, at your request, once every 12 months. Each reporting agency will give you a credit score, if you pay a fee (this investment is relatively small compared to your savings over time.) Keep in mind that your credit rating is a factor in several other areas as well, such as auto insurance premiums, changing employment, renting a new apartment, etc.

Just about everyone has something in their past credit that is less than perfect. Here are four reasons to increase your credit scores.

    1. Most creditors are willing to renegotiate the terms of your non-preferred debt (credit cards, personal loans, or department store cards) with high interest rates if you speak with the right person.
    2. If you have an adjustable mortgage loan that is due to reset or you are planning to purchase real estate in the future, you need to have credit scores higher than 680 to avoid additional fees when refinancing or purchasing due to changes on how Fannie and Freddie evaluate risk effective March 1, 2008.
    3. The current real estate market conditions (low interest rates, declining prices, and increasing inventory) has open a window of opportunity to invest if you have a financial plan.
    4. Time and opportunities will pass whether you're ready or not.

Contact me if you have any questions about some items on your credit file or if you like to learn some strategies to improve your scores.

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Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
Good post Joseph! Only better if I my name was on the tag line. 8-)
Feb 20, 2008 09:10 AM