Your credit score can play a bigger role in your life than
you may think. Most people believe that having good credit is only essential in
obtaining a loan. However there are numerous benefits than simply qualifying
for a loan such as better insurance rates, opening up employment options, or
even renting out an apartment. As a recent finance graduate lets discuss some
myths and things I wish I knew about credit when I was growing up.
Credit cards are bad – On your 18th birthday you
qualified to get your first magical little plastic card. In college I had
dozens of friends who refused to get a credit card because they thought it was
unnecessary debt and would ruin their lives. The reality is that getting a
credit card is the best way to start building credit. However simply getting
one and never using it doesn't count, the key is to use your card routinely
while only spending what you have and then paying at least your minimum
payments on time.
Having numerous Credit cards hurt your score – Yes and no,
applying for numerous credit lines in a short period of time can look very bad.
However having a lot of credit cards can actually be a good thing because
lenders have reviewed you financial situation and entrusted you with these
accounts. As long as they’re kept track of and paid off in time.
Pulling your credit score will hurt it – Also a yes and no, there
are hard pulls and soft pulls. When an agency pulls your credit score prior to
opening a new line of credit, it is considered a hard pull and can impact your
score negatively (slightly). If done correctly personal and credit counselor
requests are considered soft pulls and will not impact your score.
Inquiries and payoffs will affect my score immediately – The
purpose of a credit score is to evaluates an individual’s credit worthiness
overtime. Actions that you take today whether good or bad will not necessarily
impact your score immediately. This means that improving and hurting your
credit will not happen overnight, in fact it may take a couple of months for
the actions you took today to be reflected in your score. These are only a handful of myths about credit. The reality
is that no matter where you stand in life whether that be on the verge of
purchasing a new home or a college student looking to purchase another six
pack. Building and maintaining a good credit score is essential.
Ryan M. Nguyen is a Broker Associate at Keller Williams. He is a part of Carr Peck & Associates which has been recognized locally and nationally as an expert in real estate. Driven by his passion for real estate he strives to show the world what his generation brings to the table. For more information feel free to contact him or call 303.828.8720 Photo provided by Google
Author:Jason Peck Phone: 720-446-6301 Dated: September 9th 2014 Views: 849 About Jason: ...
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"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!