Credit Score is not everything….
Over the last couple of years, there’s dozens of credit repair companies that have popped up touting that their company can improve your credit score. There’s been millions of Americans that have experienced knocks and bumps on their credit because of the economic downturn that we are coming out of. Unfortunately, there’s plenty of business for these credit repair companies.
The public cares about getting their credit score up for various reasons including insurance premiums, credit cards rates, even security clearance for jobs. But the #1 reason why people want to get their score up is get a mortgage to buy a home.
But credit score is not everything. In the greater Charlotte area, I’ve had the terrible experience of explaining to potential homebuyers that they don’t qualify for a mortgage even though they have a 750 credit score. I’ve seen buyers that have worked for years fixing their credit and paid thousands of dollars to credit repair companies but then cannot get a loan for a home.
Your credit score is only one part of your ability to obtain a mortgage. There are several other major factors like outstanding collections, the amount of debt you have, and the amount and source of your income. Back in 2007, lenders like Countrywide, would give loans to homebuyers with a good credit score and a signature. Those days are gone and those lending practices caused the economic downturn.
Rather than going to a credit repair company to end up with a great credit score and no mortgage, please call us. We can refer you to lenders that can work with you on improving your credit. The lender can look at all aspects of your individual situation, not just credit score.
By: John Green