Your Credit Score Means Business

Sometimes people joke about having a bad credit score. It is not so much that they think it is truly funny, but more out of desperation. They have looked online to seek professional help, because since the Recession the credit repair business has been booming. Finding a reputable one takes more skill and resolve.

Help Can Be A Click Away Or From A Local Company

Although there are many scam artists lying in wait of their next victim, most businesses are legitimate. It goes without saying that thorough due diligence is necessary find an online or local company that is professional and eager to do more than just make a fast buck.

Tip #1-Buyer Beware When It Comes To Credit Repair

That title is not just a sick attempt at rhyming, but a real concern in the marketplace. Because of the level of competition, many people succumb to the fast-talking, cunning salesman that promises you the moon. This is not just an exaggeration. When times get tough the scam artists come out of the woodwork. They set up shop and work overtime to clean you of your remaining money. Many times we hear of older people who have used their last retirement or savings to buy into a shady investment. This also applies to older people who need their credit cleaned up. Perhaps they had a reverse mortgage go wrong. Now their only option is to repair their credit, before they hit retirement.

Credit Scores Affect Your Car Payment

Before you waltz over to that car dealership with dreams of driving the latest and greatest coupe off the lot, you might want to review your credit report. There is no doubt that when left to the dealership-financing department, your car payment will be high. Even if you have a decent credit score, between 620 and 670, they will find some excuse to give you a higher interest payment. If you had taken your time to inquire at your bank or credit union, most likely you would get a much better deal. Car dealers will hoodwink you with terms like customer rebates and APR, but at the end of the day they want a hefty commission. Just be prepared that if you go to them with a low credit score, you will leave with a huge interest rate and hefty monthly payments, regardless of the car you trade-in. Be smart and do your homework.

Business Funds Are Affected By Credit

You may believe your personal credit score cannot affect your business financing. That could not be further from the truth. If you are looking for a Small Business Loan (SBA) for your business, the banks tend to look at your credit score as a reflection of how well you handle money. Although they will ding you for that low score, they are not automatically going to reject your loan. A score less than 640 will mean large banks will not provide your business funds. However if your score is 700 and above, the sky is the limit. Community banks that are smaller tend to be more lenient. Buying business supplies or paying vendors on time will prove that you can be a responsible business owner with your money. This will in turn impress the lender.

Mortgage Lenders Rely On Analyzing Credit Scores

You can salivate at those homes on the hill all you want, but getting approved by a mortgage lender can burst your bubble. Buying a house is one grueling process. Unless you are a cash investor, most consumers have to finance a loan. It is imperative to first get approved for a mortgage loan, before going out with your real estate agent to look at homes. There is nothing more exasperating to agents for buyers to fall in love with a property and find out they cannot get approved for it. Lenders will sit down with you to make sure the credit reports are accurate and make suggestions of what to pay off. They will give you an honest assessment, if you can qualify now or have to get rid of some debt before qualifying. Or it will mean having larger monthly payments, because of a higher interest rate.

Whether looking for a mortgage or car loan, what your credit score says will dictate if you qualify or have larger monthly payments. People with low credit scores are penalized for not keeping their debt under control. They are also looked down upon, when applying for business loans. Although business repair companies can be helpful, make sure you check them out thoroughly, before providing your personal information and money. You don’t want to pile on another mistake with your crumbling credit score.

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