The Best Mortgage Rates

Most consumers planning to obtain a home loan are looking around to find the best interest rate possible for their situation. This is an important aspect to financing because a small fluctuation in your mortgage rate can mean tens of thousands of dollars difference over the life of your loan.

Here are some important tips to use so you can minimize your mortgage interest rate and maximize the use of your money:

Raise your credit score:

Lenders will look at your credit score to determine whether they will continue looking at your mortgage application or reject it immediately. The best mortgage rates are generally obtained by consumers with a FICO credit score of 740 and up.

Achieving a 740+ credit score requires attention to the factors that make up your credit score, and how much impact they have: payment history (35%), credit utilization ratio (30%), length of account history (15%), recent credit inquiries (10%), and the types of credit you use (10%).

Make your payments on time and keep your balances as low as possible, while still using at least 1% of your credit limit. Using a small portion of your credit limit keeps your credit cards active in the FICO formula and maximizes the impact of the credit utilization portion of your FICO score.

Improve your debt-to-income ratio:

First, consider your “front-end” debt ratio, this is the amount of your pre-tax monthly income that goes toward your mortgage payment, this should not exceed 28%. Develop a detailed budget before applying for a loan so you understand what you can afford on a monthly basis.

Second, your “back-end” debt ratio, or the portion of your monthly income that goes toward all forms of debt pay off including; mortgage, student loans, car loans, etc. should not exceed 36%.

To appear as a lower-risk borrower, take care of your “back-end” ratio to improve your debt-to-income ratio, while also improving your credit utilization.

Consider short-term fixed-rate mortgage:

You have a good chance of getting the best mortgage rate possible by choosing a 15 year fixed-rate mortgage over a 30 year fixed-rate mortgage. This option can improve your interest rate by as much as 0.8% compared to a 30 year loan.

However one of the risks of utilizing a 15 year mortgage may outweigh the reward for many buyers. Having a much higher monthly payment will put strains on your budget and may cause late payments. Choosing a 30 year loan and paying it off sooner won’t give you a lower interest rate, but it will allow you to pay your debt more according to your own terms, avoiding potentially being strapped for cash when you run into an unforeseen hardship.

Larger down payment:

Lenders can give you lower mortgage rates for the life of the loan if they can get more money upfront. This is called paying for points. A point is 1% of the borrowed amount, the more points you can buy, the lower your interest rate will be. The longer you plan to hold the loan, the more it makes sense to pay for the points that will save you money.

No matter what course of action you take to lower your mortgage interest rates, utilizing a combination of all these methods will surely provide the best results. Get creative in your efforts and remember the end result – saving money!

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Are You Hurting Your Credit Profile?

Credit scores have a large impact on our financial success. Having a strong score means you have the opportunity to take advantage of the best available interest rates on mortgages, auto loans, refinancing student loans, even cheaper auto insurance. To get good interest rates, you typically need to have a score above 700, but the best deals will go to consumers with scores above 750.

Credit scores reward responsible behavior, if you live within your means and pay your bills on time you should have a good score. However, being responsible does not always mean that you will have a strong credit score.

Here are three common mistakes that responsible people make, costing them points on their credit score, and money in the long run.

  1. Having only one credit card, and using it for everything.

Many consumers limit themselves to one credit card and pay their balance in full every month. This is a great practice as you avoid getting charged interest on the account. However, using only one card could harm your credit score by driving up your credit utilization ratio, an important part of how your score is calculated.

Your credit utilization is the percentage of available credit that is being used. If you have a credit limit of $1,000 and a balance of $200, your utilization would be 20%. This is calculated for each individual credit card and across all credit card accounts. High utilization can have a significant negative impact on your score. Keep utilization below 20%, but if you want the biggest positive effect on your score, keep it between 1-3%.

Utilization is important to lenders for two reasons. First, high utilization shows them you can’t control your spending. If you consistently max out your credit cards, you appear to be very risky to lend to. Second, credit limits are calculated based on your income, so when you use too much of the credit available to you, banks will think you have too much debt relative to your income, whether you pay them off in full or not.

You can lower your utilization in two ways. First, you can make your credit card payments more frequently. Your goal is to keep your balances low, but still more than zero. Paying down your balance in the middle of the month will reduce your statement balance and your utilization. Second, you can ask your bank for a credit limit increase, which will increase your available credit, making your statement balance have a lower effect on your utilization.

  1. Not knowing what is on your credit report.

Strange things often appear on credit reports. Check your credit reports once a year to make sure that all accounts are accurate and up to date. If you see any incorrect information on your credit report, you need to take action. CreditServices.com is an industry-leading credit repair company, our Attorney-Reviewed service levels can help you get negative remarks removed from your credit report.

  1. Paying collection items first.

Every once in awhile, you may run into unforeseen problems and miss payments. Responsible consumers work hard to pay back all of the money they have borrowed. However, when it comes to your credit score, keeping active accounts current is more important than paying on a collection item.

Once a collection item appears on your credit report, the damage has been done. So skipping credit card payments to pay the collection will negatively impact your credit score even more.

Collections should be dealt with only after your obligation to active creditors has been fulfilled in order to maintain your credit score and avoid further damage. Also consider working with our Debt Settlement department to settle your collections and save yourself money.

Credit scores are complex.

Making the most of your credit score, and protecting your financial future is not easy. A lot of information goes into calculating your credit score, which can get overwhelming at times. Since credit is such an important factor in so many purchasing situations, you need to have a firm grasp on where your credit profile stands. CreditServices.com can help repair negative items on your credit report, while also teaching you how to better manage the accounts you have, and inform you as to if you should open or close any other accounts based on your current profile. Our Credit Advisors are experts on the FICO formula and can help you develop a better understanding of how to manage your accounts now and in the future.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Back To School Shopping? Keep Your Credit In Mind!

As parents, you are well aware that back to school shopping can seriously impact your financial situation. Overspending on school supplies and clothes could easily result in a damaged credit profile as well.

Using credit cards for your back to school shopping can be very helpful, allowing you to purchase the necessities for your children in the upcoming school year. However, be careful about racking up high balances as doing so will hurt your credit utilization ratio. This ratio is based on the amount of debt you are carrying vs. how much revolving credit is available to you, it is the second most important aspect of the FICO formula, accounting for 30% of your FICO score. If your credit utilization ratio is too high, it will imply that you may be overextending your finances, making you appear as a risk to lenders.

Before you start shopping, you will want to know how much debt you are carrying on your credit cards, especially if you are planning to apply for any lending opportunities in the near future. You can see what your balances and limits are by pulling your credit and examining your open revolving accounts. Pay down any cards that are already getting close to their limit as soon as you can, as it is certainly causing your credit score to suffer.

Stick to your budget to avoid a revolving balance and paying interest on your back to school purchases. A helpful trick to manage this is to spread out your school spending. Buy clothing when it goes on sale if you can, and for supplies, keep an eye on the adds as certain items are often on a rotating sale.

If at all possible, pay cash, and if not, make sure to keep an eye on your balances and make your payments on time.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Your Credit Reports

A credit report is a record of your credit history which includes information such as:

-Your identity: name, address, date of birth, Social Security Number, and potentially employment information.

-Your existing credit: information pertaining to your credit history including revolving (credit cards) and installment accounts (student loans, car loans, mortgages…), how much you owe, and your payment history.

-Public records: Information regarding any judgments, tax liens, or bankruptcy in your credit history.

-Credit inquiries: List of companies or parties that recently requested a copy of your credit report for the purpose of lending.

Your credit report is used by lenders, insurers, employers, and others to assess your management of financial responsibilities.

-Lenders will use your reports to determine whether you will qualify for a loan, and what interest rate you will receive.

-Insurers can use them to approve or deny you for insurance coverage and to set your rates.

-Utility companies may use your credit report to determine whether they should provide you with their services.

-Employers, if given permission, may use credit reports in their hiring decision.

-Landlords may use the information on your credit report to determine whether they will rent to you or someone else.

Your information is collected by three major credit bureaus; Equifax, Experian, and Transunion. They gather the information that is contained in your credit reports, then provide the information to companies that request it to make the decision on whether to do business with you.

The credit bureaus have to manage all of this information on millions of Americans, so how accurate do you think all of the information is? Credit bureaus are not responsible for the accuracy of the information that they supply to lenders, that is your job!

Check your credit reports if you haven’t in awhile to make sure they are accurate, if they aren’t, contact us and we can get you started on the right path to achieve your goals.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Negative Items On Your Credit?

Many of your neighbors, friends, and coworkers are unable to take advantage of the best, or even average interest rates on credit cards, auto loans, and mortgages. The best interest rates are only for those with excellent credit. So if you want to take advantage of historically low interest rates before they rise, you need to take a look at your credit, and get active improving your profile.

Most Americans are also unaware of what makes up their credit score, including what will make it subprime, and how long these negative items stick to your credit profile. So how long do some of these negative items impact your financial situation?

Bankruptcy:

One of the most negative items you can have on your profile is a bankruptcy. Chapter 13 bankruptcies will stay on your credit report for 7 years, while a Chapter 7 bankruptcy will impact your credit score for 10 years from the date that you filed for the paperwork. If your bankruptcy was dismissed and your debts weren’t discharged, then it will stay on your report for 10 years from the date it was dismissed. If you had a strong credit score in the past and you declare bankruptcy, you will see a large impact on your credit score. If you previously had subprime or bad credit, then the impact of bankruptcy won’t be as great. If your bankruptcy included numerous accounts, the impact can be serious.

Lawsuits and Judgments:

If you have been sued, or had a judgment against you, it will also stay on your credit report for up to 7 years from the date it was filed, made against you, or until the statute of limitations has expired. Once you have paid off the judgment against you, even though paid off, it will impact your credit score for 7 years.

Tax Liens:

Even when you pay them off as soon as possible, the tax lien will stay on your credit report for 7 years.

Delinquent Accounts:

A delinquent account will also affect your credit profile for 7 years from the date that the account was declared delinquent. If you catch up on your payments, and maintain a good payment history, the negative mark will still remain for 7 years. Payment history makes up 35% of your FICO score. This, combined with the fact that the negative mark will stay on your report for 7 years is why on-time payments are crucial to having a good credit score.

Repossessions and Collections:

Any time that you have an account referred to a collection agency, or have something like a car or major appliance repossessed, it will have an impact on your credit score. These marks will stay on your credit report for 7 years plus 6 months after the first missed payment. If there is a charge-off marked on your report, that means that after the 6 months of non-payment, the company has removed it from their balance sheet, but you still owe the debt. Unpaid debts on your credit profile will make it difficult to get any credit in the future. Take care of your debts on time unless you want them to stick with you for 7 years or more.

Child Support:

Just like any other legally binding debt such as credit card payments, mortgage payments, or student loans, if you get behind, or make late payments, they will remain on your credit report for 7 years. Treat them like any other account, and make the payments on time.

Student Loans:

Student loan debt is guaranteed or insured by the federal government, so they carry much more serious consequences than other types of debt. You cannot discharge student loans by declaring bankruptcy, and defaulting on your student loans will stay on your credit report for much longer than 7 years.

Credit Inquiries:

Inquiries will show up on your credit any time that you apply for a new form of credit. They can stay on your report for 2 years, but only impact your score for the first 12 months. This will not have a disastrous impact on your score, however, they cost you 5-15 points each, so too many inquiries can significantly lower your credit score.

What you can do to clean up your credit profile:

While it is not an easy process, disputing the accounts on your profile can help you get rid of some of the negative remarks on your profile. Aside from challenging your negative accounts, CreditServices.com will teach you how to build positive accounts on your credit profile to counteract any negatives that might remain, speeding up the process of improving your financial situation.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Using Your Credit Cards Wisely?

The average American adult carries over $5000 in consumer debt. This fact alone could be why credit cards carry a negative image. Carelessly using your credit cards can significantly damage your financial situation in many ways.

Reckless use of credit cards can leave you with a mountain of debt that will take years to pay off, accruing thousands of dollars in interest, making the money you borrow far more expensive, hindering your other financial goals. Your credit score may be damaged from this as well, making it far more difficult to obtain a mortgage, auto loan and any other type of financing.

Credit cards don’t have to be bad, they can actually drastically improve your financial situation. Learning and understanding the proper use of credit cards helps us avoid piles of consumer debt, and puts them to work for you.

The Basics

Try treating your credit card like a debit card, never use more than you can afford. Know the contents of your bank account so you don’t end up unable to afford  your balance at the end of the month.

Keep your balances low, just because you have a $5,000 credit limit does not mean it should be used. Keep low balances to boost your credit score, and keep your payments manageable.

Make your payments on time every time. Missing payments will result in late fees and can severely damage your credit score. To avoid late payments, set payment reminders for all of your bills. Better yet, if the funds are available, set auto pay on all of your accounts to make the minimum payment, you can always go back and pay more.

Only buy what you need, credit is not free money, so use your debit card or cash as much as possible, and keep your credit card balances low.

Rates

Understand a little credit card terminology to avoid costly mistakes. Annual percentage rate, or APR, is one of the most important terms to know. If you don’t pay the entire balance, your credit card company will charge you the APR on all or part of the remaining balance. If you bought something for $20 last month, it could end up costing you $25. If your card has an APR of 12%, you pay $12 for every $100 you charge if you don’t pay off the balance within the billing period.

You want the lowest APR possible, but don’t be tricked by promotional offers or introductory rates. Some cards offer very low introductory rates for a few months or a year, and increase them later, sometimes drastically.

Minimum Payments

Your credit card statements include a minimum payment amount. These are fluctuating payments depending on your balance. With auto pay, it is always best to select your minimum payments because a certain dollar amount could be more, but it could also be less than the minimum payment, resulting in late fees. Be sure to go back to your bills every month and pay more than the minimum. Minimum payments always appear much more manageable than the balance of your card, however, you must consider interest. Interest accrues on the unpaid portion of the balance and can add up quickly. If you continue to use your card while making minimum payments, you will never catch up and pay off your balance.

Rewards and Points

When you have a rewards card, you gain points for travel, cash back, and other goods or discounts. Sounds great right? However, many of these cards also come with annual fees. Usually you will pay for this fee during your first billing cycle, though some companies will waive the fee for the first year and add it in the second. Read the fine print, and remember not to charge just for points and rewards.

These points are available because of cardholders that use credit irresponsibly. The card companies profit off of the interest charged to those who don’t pay off balances.

The real way to take advantage of rewards and points, is to only charge expenses that you already planned for, and then pay the balances off. The moment you begin to charge more because of rewards is the moment these cards threaten your financial situation.

The Upside

When you charge on your card, the funds don’t immediately come out of your bank account, and you are not down any cash until you need to pay that bill. This can help prevent fraud, theft, and any mistakes that may show up on your statement. If you pay for something with cash, you may or may not be able to get that money back. You are always able to dispute a charge on your credit card statement.

They also provide you with the funds you need in an emergency situation where your bank account doesn’t have enough to get you through to the next paycheck.

Use Your Cards Wisely

There are some great advantages to using your credit cards properly. But be sure not to get out of control or this could lead to financial disaster. Don’t put yourself in a situation where you don’t have enough money to get by, and your credit score will leave you unable to obtain a loan.

Educate yourself, use credit cards responsibly, and track your spending, and credit cards can be a powerful financial tool.

CreditServices.com puts a high value on educating our customers. If you have found yourself unable to obtain the lending options that you desire, we can help. We can help you through the credit repair process and teach you what it will take to manage your credit accounts successfully for the rest of your life.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Save On Your Next Car: 6 Tips

Purchasing a new vehicle can be a very stressful situation. Make sure you do all of the research that you need in order to feel comfortable making your decision, and you won’t leave with a sense of buyer’s remorse.

Here are 6 important tips that will help you save money on your next car.

1.Find your financing before you shop.

It is widely known that paying cash will save you the most money on your new vehicle purchase (as you will not be paying any interest). However, if you are unable to dish out the cash, explore your financial options outside of the dealerships or car lots. Obtain pre-approval from your bank or credit union for the lowest interest rate possible, potentially saving you thousands. Independent financing will give you more buying power than relying on the finance department at the dealership.

  1. Check your credit profile.

The interest rate you receive depends significantly on your credit score. Your credit score is used by lenders to determine how risky it is to lend you money, and will adjust the interest rates according to their evaluation. In order to make sure the lender’s assessment of you is as accurate as possible, check your credit reports for inaccuracies. Do this a few months before shopping so there is time to fix these inaccuracies and improve the interest rate you receive.

  1. Compare available APRs.

Typically, the loan rates you are offered are shown as an annual percentage rate or APR. APR includes interest and fees, allowing you to compare loans in an apples-to-apples fashion. A lower APR will save you money over the length of your loan and lower your monthly payment. In order to determine which type of loan will work best for you, use an online loan calculator to experiment with loan amounts, interest rates and loan terms.

  1. Avoid long-term loans.

Longer-term auto loans have become increasingly popular as monthly budgeting concerns are often taken into consideration more than the total price paid over the life of the loan. Terms as long as 84 months are being reported more frequently than ever before. Though these loans are gaining in popularity, this does not mean they are a good idea. A longer loan will provide lower monthly payments but you will end up paying much higher interest. Keep your term as short as you can while still being able to fit it in your budget.

  1. Compare rates and terms.

Shop around for the best interest rates and loan terms available. A dealership may be able to offer you the best rates for your situation, with some new car purchases being financed at 0% for 60-72 months to buyers with great credit. If the dealership is not offering incentives on brand new vehicles, credit unions will likely offer you the best rates, educate yourself on your options.

  1. Focus on total cost.

Don’t get burned, concentrate on the total cost of the loan you are applying for rather than the monthly payment. The best options for lowering the total amount of your loan are to bring in a trade-in or a significant down payment.

The bottom line:

Do your research, exercise your options, and make sure your credit is going to help you obtain approval. If your credit leaves some room for improvement, CreditServices.com can help you.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Lowering Student Debt: 5 Tips

The burden of student loan debt can prevent you from buying a home, starting your dream career, or even settling down with a family. Here are a few tips to get those student loans paid off faster so you can get started toward your goals sooner.

  1. Get a second job before settling down.

If you have proven your ability to comfortably live off of your first job, the income from a second job can be put directly into your student loans. Continue making the monthly payment that you have been, then add your second income on top of that to accelerate the process.

  1. Refinance your student loans.

This is where strong credit can really go to work for you and benefit your repayment efforts. There are a few very competitive options for refinancing federal and private student loans, enrolling in automatic payments could provide you new rates as low as 2%! Refinancing at a lower rate can reduce your minimum payment, keep making your original payment or more and you will pay off your debt faster.

  1. Reconsider big-ticket purchases.

One of the best things about being a graduated adult is spending like one. Vacations, nice dinners, new cars and apartments are all fun, but if they are taking up half of your monthly budget, it will be wise to cut back and put more money toward your student loans.

  1. Live at home with your parents.

Yes, we said it, live at home with your parents. If this is an option, you can really improve your student loan situation. Find out what you could be paying for rent in an apartment, then add this amount to your monthly student loan payment or split it and invest part of the extra money.

  1. Write a detailed budget with a loan payment plan.

Tracking your money as it comes in and knowing where it will go may give you some peace of mind. Your budget needs to be detailed so you can find any black holes where your money might be going. Making sure your loans are accounted for and adding any additional funds to them will help you pay your loans, and be a smarter spender.

Put these 5 tips together and you will surely be paying your loans off much quicker. Don’t be another college grad that goes delinquent on their student loans. Your debt may be debilitating now, but collections, judgments, and bad credit can make your situation worse.

 

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

7 Ways Credit Helps You

By now, you are well aware that credit plays a significant role in your financial success. But are you aware of how widespread the influence of your credit is?

Most consumers know that credit scores are important, but usually don’t know how often their credit makes an impact on their life. Credit scores mostly come into play when applying for some form of new lending, which is why it is very important to check your credit reports before applying for a loan or credit card. There are plenty of occasions when a good credit score will help you save money or reach your personal and financial goals, which is why you should regularly check your reports.

Paying by credit card is easy and comfortable

Here are a few ways your credit can help you:

  1. Apartment Hunting:

Rent payments generally are not reported to the credit bureaus, but having a strong credit profile shows your ability and willingness to pay your bills in a timely manner and can help you get into your apartment. In a competitive rental market, which currently exists, a better credit score will make your search quicker and easier.

  1. Setting Up Utilities:

If your utility provider notices that your credit profile has signs of late payments, you may be required to put down a deposit, or a higher than normal deposit when you sign up. These deposits are usually refunded or credited back to your account, but nonetheless, it is better to not have to put down a deposit in the first place.

  1. Car Shopping:

Unless you’re planning to pay cash, you will need an auto loan. The better your credit score is, the lower your interest rates will be. Lower interest rates can also be obtained with a larger down payment, but a higher credit score will be a benefit in any scenario.

  1. Insuring Your New Car:

Insurance underwriters can use your credit score while determining your auto insurance premium, and in some states your credit score will have a significant impact on what you pay. According to industry experts, a credit score can be a better predictor than your driving record.

  1. Buying a home:

Mortgages are huge loans spread over many years, so a few credit score points can translate into tens of thousands of dollars of savings. If buying a home is not on your immediate radar, you should still be monitoring your credit and trying to improve your profile, so when you’re ready to buy, your credit score gets you the most value for your money.

  1. Emergencies:

If you don’t have the savings to cover an emergency, you will likely need some sort of financing. Great credit will give you access to a variety of lending options from low-interest credit cards to personal loans. A stressful situation will only gets worse when you start missing payments because you can’t get a loan.

  1. Repaying Student Loans:

Depending on your current student loan rates, you could stand to save a lot of money by exploring refinancing options. A lower interest rate requires a good credit score, the longer it takes to improve your credit, the more money you will lose in interest.

Your credit profile will determine a variety of aspects of your life, adding up to have a very significant impact on your financial life in the long run. Make sure your profile will help you.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Studen Loans Holding You Back?

The average student debt for this year’s american graduates tops $35,000.

Millennials are having difficulties paying off student loans and for many it is holding them back from their American dream. Buying a car, a home, having children, getting married, and saving for retirement are all part of that dream, but student loan payments make it difficult to add more debt.

Salaries for recent college graduates have remained fairly flat, student loans on the other hand have doubled since the 1990s. Catching up can be very difficult so many college graduates are moving in with their parents and delaying their American dream.

One option you have to speed up your chase for the American dream is to get the best credit you possibly can. Start building your credit now and you will be able to pay less for the money that you borrow, allowing you to have more reasonable monthly payments, freeing you up to move forward. Use your money wisely, pay off high interest debt, and make sure to always make your payments on time, and you will start chipping away at your debt, while still living your life.

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Don’t Judge Yourself!

Begin by seeing what kind of shape your credit profile is in before you attempt to build your credit, refinance loans, or apply for financing. After pulling your credit report, you may feel a lot better about your situation. Certain accounts and items on your report may need to be fixed over time. However, there are a lot of things that may be removed quicker than you thought.

Aside from repairing the history that may be hurting your credit profile, we coach our clients on what they can do to establish and continuously build a great credit profile.

CreditServices.com will teach you the best way to utilize and build your credit. Our advisors will coach you on specific tactics that you can continue using to build your credit for the rest of your life. Your personal detailed Credit Guide will help repair your missteps in the past, and show you what you can do to prevent them from happening again.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.