Posts Tagged ‘www.fix-my-poor-credit.com’
Would You Like an Extra $512 a Month?
October 8th, 2008 | 
Author: I haven’t really spent too much time talking about credit restoration on this site (yet), but now is a great opportunity.
The Motley Fool ran an article last week talking about the effects of poor credit. I suggest you read it (the link is at the bottom so you read this article first….). The point of the article is that poor credit costs a lot of money due to higher interest rates and other rates such as insurance, etc.
The point of THIS article is that credit restoration pays. Follow me here… if poor credit costs you money and improving your credit saves you money, then credit restoration must be an investment rather than a debt.
Although the article only shows a cost of $512 a month, yes EACH AND EVERY MONTH, I personally believe the actual figure is much higher. Considering each persons average credit card debt, auto loans, mortgage, and insurance costs, that number could be mush higher.
As a mortgage planner, I am concerned about how much poor credit affects your home loans. First, you could be turned down for the loan altogether. ‘Nuff said. However, let’s say your score is above 580. You MAY still qualify for the loan, but the costs, meaning interest rate, insurance, etc., may be higher. Factor in Loan Level Price Adjustments (LLPAs) and a larger downpayment, the loan may now be out of reach even with marginal credit.
If we can raise your score to 740+, you could qualify for the lowest downpayment and best interest rates. A score such as that gives you many options that a poor score does not.
The first question I am usually asked is: “Can you raise my score from 580 to 740?”. My firm answer is always: “It depends”. And that’s the truth, because it does. It depends on what types of items are on your credit report, their age and other factors. We have seen it happen before, but it does not happen in every case nor should you believe it will happen to you. We should be realistic to avoid disappointment.
Would you settle for a 127 point increase in just over 6 months? That is what our average client experiences, but each scenario is different.
We’ll talk a little more about credit restoration in a future blog. For now, if you are interested in increasing your credit scores, shoot me an email to scott@usccraonline.com or visit us here on the web.
To view the article on the Motley Fool website, click here.
Scott
Get more information from your Northwest Indiana Loan Guy! Credit Issues? Not a problem when you click here.
Posted in 
Tags: 