FINANCE: YOUR CREDIT SCORE IS MORE THAN A NUMBER

Happy FRI-YAY!

I just wanted to quickly discuss your credit score and how it is more than just a number. Most people think that once you reach 700+ that you’ve made it and can have it all..that is NOT always the case.lol As an advisor, I review credit scores/reports every day and I do not always lend to people with a high score. For example, I have seen people with a 680 credit score get approved for a loan that someone with a 720 credit score did not get approved for. Why? Because the person with the higher credit sore has a higher debt ratio. Yes, if you pay your bills on time, your score will increase. Yes, having accounts in good standing will also increase your score. But using too much of your debt…its NOT ok! Having a really high debt ratio can stop you from getting approved for any type of loan. When you have a high debt ratio, that means that you are paying more month each month in bills and you have less money left over (disposable income) so how are you going to afford another monthly payment for another bill? While working on your credit, remember to pay off some debts. Pay the credit cards down….Make a few principle only payments on your auto loan , personal loans, and mortgages!! Any Questions Just Ask!

Have a great weekend!