Why Not To Stress About Not Having Perfect Credit
Posted by: Staff Writer | Jul 21,2007
|
|
You can't control everything that happens to you - your only option is how you respond. You could be having problems right now with your finances. Maybe your income has been cut and the bills are mounting higher. Perhaps you've been sick or had an accident and now you're getting delinquent notices from your credit card issuers. Your choice is to stress out over your predicament or to not let the stress get to you. The difference might be what determines your next steps.
How Bad is it Really to Have less than Perfect Credit?Well, it depends how 'less than perfect' we're talking about. The FICO score range goes from 300 to 850. But top tier credit rates typically go to anyone with a score of 720 or above. This means that practically no one has a perfect credit score and even with 130 points less you're still going to get be considered to have very good credit.
If your score dips below 600 on the other hand, you will be considered a sub-prime borrower and the only offers of credit you'll receive will be at a much higher rate.
A poor credit score can effect you in several ways since it's not only credit companies who are looking at your credit history but also employers, landlords and even insurance companies.
Don't Stress - Clean Up the Credit MessRather than spending sleepless nights worrying about your situation, choose to take care of your financial situation. Don't give in to crippling stress.
First of all, realize time is your friend. Negative information on your credit report only lasts seven years. In the big scheme of things, seven years can pass by pretty quickly. Some bankruptcies will last ten years, but not usually Chapter 13 bankruptcies, which are the kind where you defray a portion of your debts.
Next, you can set up a budget that forces you to live more within your means so that you don't fall heavily into debt again. Be particularly careful to pay your bills on time. This way your credit report will not be receiving any new negative information. When the seven years are up, your history will be clean.
Income Matters More Than History
Finally, understand that the companies considering giving you credit are more concerned with how much money you make than they are with mistakes you've made in the past. In fact, you could have a Chapter 7 bankruptcy on your credit report, but if your income were high enough, you would only have to wait about a year to qualify for a mortgage.
So, take a breath. It's going to be all right.
|
|
Print
E-mail
Del.icio.us
Digg
