It's true, when you think about getting a mortgage for that condo or getting an offer put together for that speed boat on credit, we are upset when the credit company or the mortgage lender turns us down. This is all despite the fact that we have a good salary, a steady job and always pay off our credit card bills on time.
It's a fact that millions of Americans have absolutely no idea how their credit score is calculated. There have been at least four surveys that have taken place in America that ask us what it is we think affects our credit score. In some of the surveys, well over 20 questions have been posed. But while the majority of us know that mortgage lenders and those dishing out credit cards definitely use them to check on us if we submit an application – there are huge gaps in the knowledge surrounding the other factors that could directly help or hinder our credit score.
Generic Scoring
Less than half of all Americans are aware of the three key points where lenders and banks use generic scores. This is where you find your score start to go down just for applying for another credit card, making an application for a mortgage or applying to buy that Harley Davidson Fat Bob on credit. It does not matter if your creditors approved those mortgages, credit card applications or a chance for you to cruise down Route 66 on credit or not – your credit score will be affected by the application process alone.
If there is a risk that you may not be able to pay off that loan, then your credit score will be affected; not a lot of Americans knew that. This could be due to something as simple as being in a job that has some form of instability associated to its industry. But Americans can do something to improve their credit rating and paying all your bills, loans and credit cards on time does go a long way to help.
Many young Americans seem to be less savvy when it comes to understanding what pushes our credit score up or down, particularly the age group between 18 and 32. There are however several online websites that mimic the factors that determine our credit score and it would be prudent to those of us that do not know how our credit score is defined, to pay attentions to it.
Keep your eyes on that credit score and do your research before applying for a loan, credit card or mortgage.
Follow our Blog at PamsVAS for the latest Real Estate Industry news
