TEXAS FIVE STAR REALTY

Problems and Solutions Concerning Credit and Credit Score:

Part 1: As part of series of articles (blogs) regarding Credit and Credit Score, here we start:

In today’s tough economic times, where every person is being judged by his/her number (credit score), having good credit and credit score is more important than ever before. You need to have good credit just to rent an apartment, rent a car, open a bank account, get auto and home insurance, get a job, buy a car or obtain a home mortgage.

Just a few points on your score can make the difference in obtaining home loan, auto loan, or even a credit card.

Depending on your credit score, you could be denied a loan, offered a normal interest rate, or offered a loan with higher than normal rate and/or require to put more money down. Like most cases in finance, those with the lowest risks get to pay the lowest rates.

Recent Statistics and Studies:

According to “The 2013 Consumer Financial Literacy Survey” and “4Ways American are Financially Illiterate” by Wall Street Journal reported in June 2013, we have the following statistics:

·         26% of American adults (about 61 million) do not pay all of their bills on time.

·         7% of American adults (about 16.5 million) have debt in collection

·         37% of American adults (about 86 million people), carry credit card debt from month to month

·         40% now give themselves a grade of C, D, or F on their knowledge of personal finance

·         14.2% of consumers fall into the 300 to 549 FICO score range. This is the range that most lenders do not lend for any purpose.

·         61% of American adults failed a basic finance test.

Concerns:

·         The Federal Trade Commission’s February 2013 report shows that as many as 26% of people have an error on their credit report.

·         60% have not reviewed their credit score within the past 12 months

·         65% have not reviewed their credit report within the past 12 months

·         National independent studies show that the average American lacks the knowledge, skills and tools necessary to make the most effective decisions regarding financial matters

Solution:

·         Educate yourself to manage your finance and your credit more effectively,

·         Know what is being reported in your credit file,

·         Know how to remove or correct obsolete and/or inaccurate information from your credit files,

·         Learn tips and tricks to build and improve your credit score,

·         Be aware of traps not to fall into,

·         Know your rights under the Fair Credit Reporting Act.

·         Follow the list of Do’s and Don’ts under different situations

Options:

Option 1: For those who have time and willing to do it themselves, Do It Yourself: Obtain a copy of the “Credit Score; Tips and Tricks on how to improve your credit score” Book, become able to fix and repair problems in your credit files without paying fees to “repair” your credit history, and start improving your credit score free.

Option 2: For those who don’t have time or desire to do it themselves: research and find a reputable and reasonable-priced credit repair company, to improve your credit score. Even if you select this option, it is always in your best interest that you know what impacts your credit score and be ware what is in your credit reports.

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