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| Managing your Credit for Life Space Matters® Your credit worthiness is one of the most important factors you must stay on top of in everything you do, because it affects your financial picture at a very fundamental level. Lenders of all types review your credit history through one or more of the major credit bureaus. This page will provide you with information about how to manage your credit to assure that you are in control of your life space matters. We have extensive information on credit in our mortgage library. is one place to start. If you have never looked at your credit reports you need to - TODAY! Businesses and individual property owners in the State of Florida are encouraged to review the materials here and if you have questions - call us today. Charles C. McGowen, is a licensed Mortgage Broker in the State of Florida, United States. The articles below are intended as broad information services and not specific or comprehensive to every circumstance in every State. Consult a local mortgage professional or an attorney to make sure laws applicable to you are considered. Mortgage products and programs presented on this web site are based on lenders and programs available in the State of Florida. Understanding Your Credit Score Your credit score is used by anyone loaning you money. Credit card companies, home equity lenders, auto loan lenders and finance companies all use a model created by Fair, Isaac and Co, the San Rafael, California company that pioneered credit scoring 40 years ago and dominates the field today. This score is most often known as FICO and serves as a snapshot of your credit history. A low score can raise the price of your loan and a very low score can mean denial of your loan completely. Make sure you understand the implications of any bankruptcy filings BEFORE you file. Here are the approximate percentages that determine your FICO Score:
Your score will range between 300 and 870. The higher the better. As your score increases, your credit risk decreases. Exact numbers differ by lending institution, but the average high approval score is 680 or above. Often your score is taken from all three credit reporting companies and the middle score or average score is used. The exact process varies by lender. Depending on the lending institution, your score can cost you. Some lenders charge a higher interest rate if your score is below 600. When you apply for credit your score does not come directly from FICO. Instead each bureau has its own version of the rating system with its own name:
Take advantage of . Tools like that can help you manage your particular situation and everyone can benefit from
As you look over your credit reports make very sure that you review all the details. When you see something that is out of place and does not match your records - you need to be aware of "identity theft". These are instances where someone has pretended to be you and made financial transactions in your name but they got the benefit. Protect yourself from those kinds of thefts.
How much is your credit costing you? If you are making payments on a car, you are probably paying between $5,000 and $8,000 more in interest just for having bad credit. This added interest shows up every month in a higher payment.
Credit Cards We have all charged something and not felt we paid for it. Even when we get the bill we look at the minimum payment and think "that's not so bad". Many people take this so far that it puts them into serious debt. To really get a handle on your spending using credit cards you must have a different frame of mind. Consider your credit cards cold hard cash. Remember you are up against the heavy weights in advertising and keeping your wits about you takes some serious awareness. Here are a few things to keep in mind:
Understand that bad credit cost you far more money in higher interest rates on your credit cards and loans. Keep an eye on your credit score by ordering your credit reports at least once a year. Check them for accuracy and be quick to dispute anything that doesn't belong there.
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