During the process of mortgage pre-qualification, many questions get asked. Among those questions are those pertaining to the applicant's credit and credit scores. This isn't surprising at all, given the enormous importance credit plays in mortgage lending.
What is surprising to me though, is NOT the number of those applicants that don't know their credit scores. Nope. It's the sheer number of those people that think they DO ... and then are totally wrong. It turns out they truly have no clue just how "financially fit" they are.
Now I'm not talking people that are trying to misrepresent the reality of their credit scores. That happens, although I don't understand why someone would try this. I'm obviously going to find out the truth when their credit report is run.
No, I'm talking those that honestly do not know. And being in the dark about credit and credit scores? It's just not financially healthy.
Credit, and credit scores, are written about and talked about often and in great detail everywhere ... and there's a good reason for that. Now more than ever, your credit scores play such a huge part in what you are charged when buying items. Or whether you get those things you want or need to live or work.
Credit scores can be the bottom-line determinate as to whether landlords will rent to you. Whether you will get a utility company to turn service on in your home, apartment, or business when you apply for it. Whether you can get a cell phone provider to put you under contract for cell service. In today's world, all very important things.
Nowdays, you must carry car insurance to drive. What you pay for that auto insurance will be dictated by your credit scores. Other insurance premiums will be affected, as well. Those credit cards with the low low interest rates that you see advertised all the time? You won't be eligible for them, if your credit scores are too low.
Credit scores can't just matter to you when you're hoping to buy a home ...
Everything related above is why it's so important for you to get aware ... and stay aware ... of your credit scores and credit standing. You have to pay attention on an ongoing basis.
Look at it this way ...
Your financial health needs must be addressed much like your physical health needs do. You need a yearly financial check-up, just like you do with your physical check-ups ... only your financial check-up is the act of running your credit report at least once per year.
Again, you don't become financially "fit" just when you're hoping to buy a home. Being knowledgeable about your credit and your financial health should be a lifelong and ongoing regimen. So get knowledgeable about your financial fitness. Find out your credit scores and then stay educated about maintaining and improving them.
I can help you accomplish that. And there will never be a better time than right NOW to get started. So pick-up the phone ... email ... text ... contact me via my website forms ... stop by and talk to me today ...
* Have credit questions or needs? Want to know your credit scores? Get on track to buy a home? Improve or repair your credit and finances? Contact me now. With over 35 years of credit and mortgage experience and expertise ... and my "New Leaf" credit improvement program, I can help you accomplish your goals. I can be contacted by any of these means:
Direct: 815.277.4036 Cell/Text: 708.921.6331 Email: gene@chicagobancorp.com Website: www.genemundt.com
Click here 4 a: NO Cost NO Obligation Mortgage Consultation
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Skype! 630-219-1316
Gene, a sound look at the credit score BEFORE it needs to be a good number is a very wise move. Then start working to optimize it for when you need to use it to get a loan.
Gene,
Mind boggling that folks just have no clue what their credit score is! It's absolutely critical to know and important to make sure it's accurate. Just refinanced and has two of the three at a great level. The third credit reporting agency showed an issue with a tax item from our small business we had no idea about - a lien of like $300 we weren't aware of. Keeping up with your credit is very very critical.
Not being financially fit will cost you a ton!
All the best, Michelle
Gene,
It is so interesting that the three credit scoring companies are for profit big money makers and yet when it comes to helping the consumer clean things up they drag their feet. I for one am hoping for a much needed reform of this system.
Gary: Pre-emptive moves regarding credit are wise. Improvements can take a while ... which can hold up a purchase. Why run that risk? Get the report and talk with a professional now ... that's sound advice!
Michelle: I find it amazing too, in this day and age especially ... that someone would not be aware or take the time to find out. Too much rests upon good scores anymore. Just a word of precaution ... even after the credit bureau says the issue has been cleared-up. Keep checking every 6 mos. or so to make sure it doesn't re-appear on your report. I've seen problems arise down the road. Better safe than sorry ...
Sandra: We could have a long discussion regarding all the "issues" that surround our doing our jobs these days. Reform is warranted and will be welcomed ... should it come ... Thanks for writing!
Gene
Who cares about credit scores - I just like seeing your little granddaughter growing up!
Seriously though, potential homebuyers, whether first time or repeat, should find out what their credit score is before looking at one house. If the credit score doesn't add up, that should be worked on first.
Gene ... Great blog with absolutely excellent advice to consumers and agents too! Great Job ... nice feature!
Why thank you, Margaret! I agree! And we're having alot of fun doing it ...
Lisa: Thank you. I appreciate your kind words. Hope some people take it to heart ...
Gene
I agree with Margaret! She's adorable! I always find your information so helpful for all my clients - thanks Gene!
As we watch more and more people get their credit destroyed...it is hard to talk to people about caring about their scores when they are struggling to stay afloat. I hope another mode of rating consumers comes to the forefront. ASAP.
Gene,
I am amazed how many people don't know their credit scores or just don't want to know. I think your service can help everyone.
Finacial fitness is so important. I try to stay on top of things. It is good to be fit.
Gene:
I am amazed when people do not have an inkling what the status of their credit is. Or they think their credit is great and forget about default on a loan, or credit cards.
Great advice, as always, Gene. We need to follow a healthy diet not just once in awhile. That doesn't work. Same with our finances. People really don't know what their credit scores are. There should be no guessing. Live right and you won't have to worry.
Our credit scores effect more than just our home loan rates, its worth getting things repaired. Thanks Gene.
Financial fitness, like personal fitness, is an ongoing lifelong process.
Good stuff, thanks for sharing it.
I had one friend that was convinced that she could buy and then she went a talked to the bank! Not only did she find out she couldn't buy due to credit but she found out that there was fraudulent activity on her report! I think you should run your report every year just so you know!
Great advice and your grandaughter is adorable. I hope she doesn't have a credit card yet ,-)
Excellent post, but I think most people (myself included) are disillusioned with the whole money making, credit reporting system. It's like anything else that frustrates you...you avoid dealing with it until you have to. You get the scores and a husband and wife can fill out the same exact information and the scores will come back different. I agree it's important to know your financial health, but the current system in place really is a sham and I would love to see it overhauled in the near future.
I think part of the problem is many families are facing cash flow shortages and have to decide who gets paid this month ! This will play havoc on your credit score !
Not knowing something can only be handled one of two ways...either you start to know it or find someone who does...With people like Gene available, I lean toward outsourcing which leads me more energy for other things. Go see Gene or his granddaughter for excellent financial counseling and all the rest of it while there
Mike: That's the part that amazes me. How they could NOT understand that there is a real importance and direct link to what they are paying for things and what is available to them .. I just don't know. Hopefully they soon realize it and take action.
Dagny: I'm glad that you find the info I send your way useful for your clients. I hope you know you can always shout out my way should they have a question or need that I can help you with. And thank you ... we adore our little girl too. She's such fun when we see her!
Dawn: I understand their positions ... but even in trying to stay afloat there are decisions that are less harmful to your credit then others. THAT is where talking to a professional can be helpful. And THAT is why you and I are in business ... to help ...
Jeremy: I think my services are helpful .. but there are many LO's and others that can provide much needed assistance for those seeking help. And in so many cases, the assistance and guidance is free. They just need to step-up and ask for it. But you're right ... some just don't WANT to know ... and that confuses me.
Joan: Pass your wisdom on!! Your clients need to hear it!
Hey Evelyn! Great to hear from you again. And I agree ... but with so much media focused on the problems we are facing, how do you bury your head in the sand??? I find it hard to avoid the topic. It's everywhere. I realize we're in the business, so we're going to be on heightened awareness ... but still ...
Ahhh Jane ... I know when you show up and give me the thumbs-up I've done something right. The Jane Seal of Approval! Thank you ...
So true, Tom! And the great majority of Americans can spruce up their credit, even if they have good scores. We can do better, in most cases ... so why not??
Anthony: So right! It takes an active awareness and discipline. Not always easy to do, but very worthwhile. Thanks for commenting ...
Kerry: You point out something very important .. and that's you can receive a FREE report in a variety of ways. So why not take advantage of that??? Thanks for the kind words ...
Rosalie: Those things happen .. and you point out a very strong reason to check your report at minimum once a year (perhaps even more after finding errors). Mistakes do happen. It's best to get them cleared-up quickly so they don't do you more damage down the road ...
Mitchell: No! No!! No credit cards yet! But you showcase a very important issue. Children are issued social security numbers upon leaving the hospital now. It's important to check to make sure that their credit isn't being damaged or their social security numbers being used fraudulently when they're young. Parents and guardians must be aware of this growing issue ... great point! And thanks .. we thinks she's a little doll!
Charlie: I agree there are serious issues with the current reporting system. I believe (like you) that the current economic difficulties being felt by so many have to be newly addressed with a future system of reporting. Circumstances need to be allowed to reflect these times. Hopefully they make a move to do this soon ... it surely would help many ...
Michael: True! It's happening is many homes. But there is a "pecking order" of where those payments should be paid first and what you can perhaps let slide a bit more. What will affect your credit the least. THAT is where getting guidance and assistance can help. Maybe damage will be done, but it can be carried out in such a way to make it as minimal as possible ...
Richie: Friend .. you are very kind and supportive. It's greatly appreciated. But I agree. Getting advice and guidance from a professional (whether me or someone else) CAN be of great assistance. And so many times, that assistance is FREE or very inexpensive. It makes sense to at least consider taking that action. As always, thank you for writing ...
Gene
Gene - Credit scores are so important these days that you are right; we need to make certain we know what they are.
Christine: Definitely! They just touch upon so many facets in our lives. It's SO important ...
Gene
Excellent post, Gene! I am forever shocked at the number of people who have no 'respect' for their credit scores--and they simply could not care! I am all over that number--still aiming for the perfect score but, haven't ever been able to achieve it--my goal is to do so before I die though! LOL
Oh and I forgot to mention. We do check ours periodically and my husband's is 1 (one) point lower than mine and it drives him NUTS! But, it still gives me bragging rights that my score is better than his! :0
Good goal to have and be working on Debe. More should be that aware and paying attention! And you tally up your bragging rights where you can in marriage ... but just think ... if he's that competitive how hard he'll be working to improve his scores! A win-win for the Maxwell family ...
Gene