Do you know what those numbers mean? Do you understand how to go about changing them, to the positive? Do you know what a difference of only one point can cost?
A recent survey by Opinion Research asked 22 credit score related questions to consumers. The average was only 60% right. Many did not understand the financial cost of a low score. For instance, a $20,000 car can cost $5,000 or more in extra interest because of a lower score. That lower score could cost $100,000 on a $200,000 home, or prevent one from purchasing a home at all.
Many consumers did not know how to increase their score according to the survey. Some believe paying cash is the best, or that having more than one credit card would lower their score. In fact, using credit responsibly is THE way to boost your score. It is not the amount of credit you have, but the relationship of available credit to income. It isn’t how much credit you have but how you use it that counts.
The recent banking meltdown and following recession has lowered scores nationwide. The lack of available jobs, or hours for those still working also contributes to this lower overall score. Today nearly one quarter of consumers have a “poor” rating; a score at or below 599.
$ Source: Detroit Free Press ð
Our take on what it means to YOU? Did you know that a low credit score could even prevent you from getting a job? Or that it could cause you to loose the job you have? How much does it effect you? Call us today to find out. 530 315-2808
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