Do you know the score?
There is a new frenzy in the consumer world these days. A lot of hype has been spun around an old term, credit score. Everyone seems concerned, advertising would have you believe that if your score is too low, you would be turned down for a loan. But that isn't the whole story. The reason advertisers are stiring the fire is that there are companies who make money providing credit reports. There are plenty of ways to get a free copy of your credit file, but many companies want to enroll you in a service to monitor your credit for you, to alert you to any changes.
It's all bunk. And I would know, I work in the business.
The score is only one factor used to make a credit decision, and it is usually used to set the rate once you are approved. How long you have lived at your address, how long you've worked at your job, how much equity you will have in the purchase (down payment) and how much credit you've had in the past, or have outstanding right now, all have more to do with getting a loan than your credit score.
What they don't tell you is that needlesly checking your credit score over and over lowers your score.
Here's an insider secret to getting your next loan,
just pay your bills every month. And if you can't, call your creditors and make arrangements with them before they call you.
Don't spend money on credit reports.
David Blaine [6:39 PM]