It’s All About The Score

27 02 2013

So before I start I have a few disclaimers. First regardless of the title of this post it is not ALL about the score. However it does play a large part in it. Second I am not a loan officer, accountant, attorney, and whom ever else would be licensed to give advice in such matters. The comments and statements below are solely my opinion. Nothing more.

Credit Score

Credit is a big factor in real estate. Whether you are looking to rent or buy, your credit will be pulled and scrutinized. I find when it comes to credit everyone can be grouped into a few simple categories.

Credit? What is that? The “I don’t have any and wouldn’t know where to start.”

Credit smedit! Who needs it. The “I just don’t care what happens or how I look on paper.”

Credit, you mean opportunities. The “I will meticulously maintain my credit.”

CREDIT, OH MY HECK HELP!! The “I fell on rough times and can’t even imagine getting out of the hole I am in.”

So there isn’t much I can say to help out the two middle categories. “Smedit” wouldn’t even consider beginning to listen and “Opportunities” probably knows more than me and doesn’t need to listen to anything I would have to say.

With the other two the process will be quite the same. There is, as with most thing, several things you can do. Many choices and avenues along the path of good credit. I am going to talk about just one. The one I find the most simple and the one you can go out and do this very minute. Get a department store credit card. Sears, Kohl’s, JC Penney, etc.The credit limit will vary. I don’t pretend to know why one person can have 5000 and another 500. I would hazard a guess and say income. It doesn’t matter. That amount, for this scenario, is insignificant. What you need to do next is USE IT. I find there is a reluctance. If you have no credit it is a big step, if you have low credit there is a fear of digging the hole deeper. Part of the process is showing you are responsible with your money. So if you have the cash to buy something use your card instead and set the cash aside to pay it off when the bill comes. If you don’t have the cash, don’t use the card. That is all there is to it.

It is always good to talk to a loan officer to see where you are and what you need to do to move forward. Let me know if you want to take that first step. I would be happy to supply a few names.

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