Mortgage Broker

[D. Abben]

Yes, Credit Rules are not kind, but in our recent economy lenders, insurance companies and even employers are hitting everyone in one of the most personal aspects of their lives to make a dollar. The scoring aspect aside, every credit report tells a story as a lender is evaluating a potential risk. Yes, a potential bankruptcy is something a lender is looking for and the lender can be wrong in its evaluation. There are marginal loans that get approved that people do make good on even if they do file BK. And there are those who file that you would have never guessed would and stick it to the lender. Most lenders will tell you of course, statiscally people with red flags on their bureaus are most often the delinquency problems. On inquiries, I agree on the scoring, however if your score is already marginal and alot of lenders are looking at your loan application it can affect the decision or terms.(it is usually not a positive to the consumer as lenders are not being as agressive in todays economy). If you know your score is good, you should be able to get good rate information up front without having to do a credit application.

For those of you who started this discussion, you are one up on the general public who for the most part are oblivious to credit, just the negative consequences. Simple advice, periodically check your credit(30% of the info disclosed could be innaccurate), try to stay current on your bills(w/i 30 days,postmarks dont count), try to at least minimize the number of credit cards you are using, if you are in a money dispute with someone try to resolve it before it gets out of hand, even if you have to put your pride aside. Just know that any variation of this could show up on your credit bureau. Do not get overly wrapped up in a score, do all this, a persons score will usually be fine if not improved over a period of time.