Personal Finance

Need Credit Score Help?

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There are some specific things one can do to raise your score fast.  But do you need credit score help?


If you have a background in mortgage loan processing, you might have a general idea about what you can do to work on your score.  Most bankers do not seem to understand how the scoring system works as they just use it as a tool in trying to determine whether you are a good credit risk.  If your score is above 720, then you are okay.  If below, then you are not as okay and you will probably be charged a higher interest rate.


What does that higher interest rate cost you?  On a credit card, it can be as little as 5% or as high as 15% more.  If a good rate is 11% then your poor credit score could have you with even a 29% rate.  The poor credit will literally suck money out of your pocket and let the bank legally "steal" from you.


Where can you go for help?  There are fee credit counselors, books, courses, and other different references.  Most of them will give a good idea on what to do.  Always ask a credit counselor for a copy of their credit score.  Don't take advice from someone who does not have a good score themselves.


There are specific letters that you need to send in order to contest errors on your credit report.  If you protest correctly, the bad or erroneous report will literally be taken off your report which will up your score dramatically.  On the other hand, if you do not follow the steps exactly or fail to send the correct letter, you will get the run around and it can take forever to clear it up.


You must occasionally borrow money to show that you are handling current credit responsibly.  If you really go debt free like recommended by some of the current "gurus", you will find that your credit score is awful even though you don't owe anything.  So when you go to buy a house, you had better be able to pay cash.


A one percentage point higher rate on a $200,000 home loan can actually cost you $50,000 in additional interest.  That can be almost one fourth of the original cost of your home.  That should make you wonder about the total cost of your home, right?  Multiply the total of all the payments and subtract the original price, then what you have left is the interest that you paid.  That is the real price of your house, not the sales price.


If you truly want to work on your score, look into an online course that will give you step by step instructions and methods to hold you accountable for following the instructions.  The best credit score help will help you take the action steps you need for your specific situation.