Importance of Credit
Friday, February 1st, 2008
Good credit makes a major difference in your ability to buy a home and how much your monthly payments will be. In most cases it takes 7 yrs for negative information to be deleted from your credit report. Bankrupty takes even longer - 10 years. What things affect your credit score? Your bill paying history is very important. If possible sign up for a minimum payment to be paid on your card automatically. Credit cards give you very little time to make your payment these days and love to charge those late fees. This can drop your score considerably.
Also important is how many credit cards you have and what kind, how long you have had the credit. Too high a balance can affect your score. And of course collections will lower your score considerably.
If you are getting ready to buy a home it is best to postpone any major purchases such as buying a car. Avoid any large purchases on your credit cards also. And it’s good to check your credit in advance for any inaccuracies. It is best to challenge they thru the credit reporting agency rather than the specific company.