Jan 11 2010
Five reasons not to get credit help
Today credit is more important than ever. Financial institutions are supposed to loosen their lending requirements, but the opposite has happened. As recently as 18 months ago, you could qualify for prime lending with a 720 credit score. Now, in most cases, you need at least a 750 credit score.
As lending requirements go up, so must your credit knowledge. When it comes to credit what you don’t know will hurt you. Below I have listed five reasons I believe consumers do not get the credit help they need.
1. Credit denial. “My credit is not THAT bad.” Your credit may not be THAT bad, but if your score is not a 750, you need to work on it.
2. Procrastination. “I’ll get around to it.” The fact is that many consumers do not get “around” to working on their credit and the financial damage continues.
3. Timing. “I am not going to apply for credit, so I can wait to fix my credit.” Credit restoration can be a long, drawn out process. If you wait until you need it, it may be too late.
4.Affordability of credit repair. “I can’t afford to pay someone to fix my credit.” The fact is, there is nothing a credit repair company can do for you that you cannot do yourself. If you are not going to take the time to work on your own credit, you cannot afford not to get help. Which brings me to number five.
5. Underestimating what your credit is costing you. Even with today’s rates you could be paying more than over $3400 per year in interest on a $200,000 home if your credit score is a 620 versus a 760. That’s OVER $280.00 per month. Could you use an extra $280.00 per month? For more information see mortgage calculators on banrate.com and myfico.com.
Do not play into the hands of the banks by not working on your credit. If you do not have the time, knowledge, and patience to work on your own credit, hire a professional. Working with the right professional will save you thousands of dollars in the long term.
