A couple of negative items on my credit report wont make any difference if I have enough good credit items. Any amount of bad credit is devastating to your chances of being approved by a credit grantor. Most credit grantors never actually look at your credit report. A computer pulls your credit report, rates your credit standing, income, indebtedness, and stability, generates a number (your credit score,) then spits out an acceptance or denial. Even one or two slow payments will usually trigger a credit card or personal loan denial. The slightest amount of negative credit will cause the interest on an auto loan to skyrocket. You will probably find that even a little bad credit, regardless of how much good credit you have, is an unacceptable barrier to credit approval. Creditors such as mortgage companies, automobile lenders and credit card companies reserve their best rates for those customers with very high credit scores. The rates and terms get worse as the credit score goes down. Going from a 580 to a 640 credit score can be the difference between qualifying for a home loan or being turned down flat. Even one negative item can bring your score down enough to cost you a bundle of money. According to the latest figures, the average American has a credit score of 677. If that same individual increased her score to just 720, she would save on average $421 per month, or $5,052 per year. Wow! The fewer negative items on your credit report, the higher your credit score. The higher your credit score, the more money you will save. Period.
Posted on: Sun, 19 Jan 2014 22:40:26 +0000