Your credit score is a measure of how much risk a potential borrower represents. The lower the credit score the higher the risk to a lender. The higher the risk, the higher the interest rate. The higher the interest rate, the more your money goes to the lender and the less it stays in your control for you to use within your monthly spending plan – including saving it for the future. If your credit score isn’t accurate it could cost you thousands upon thousands of dollars over time. Your credit score is not an asset. Don’t let anyone make you think it’s that important, but it is worth monitoring and making sure it’s as healthy as possible.
When you go to purchase a large item like a car or more importantly your home, we will need to make sure your credit score is as good as we can get it for the aforementioned reasons. It is also key for it to be healthy because if too low, lenders may deny your loan application due to their unwillingness to take a chance on you. Remember, lenders are in the business of making money on the interest you pay them, but if you can’t repay them, it represents big headaches for them because they would then have the added expense of repossessing or foreclosing on the car or home that was used as collateral.
We care about your credit score for the sake of your financial future. Remember, we need to be good managers of our resources and one of these resources is our credit score. If you aren’t qualifying for that home (which is a brilliant piece of your financial plan) or if your rate is much higher than it should be due to inaccuracies on your credit report then these are items we need to adjust. We will want to work together to bring you the solution not only for the obstacle you face today, but also for the health and wellness of your financial future.