Is Great Credit Still Important ?

It may seem like an odd topic for discussion or consideration at a time in our economy when overextended credit has gotten us into such a mess. If you've had a difficult time getting a loan lately it can be unsettling although there may be some comfort in knowing that your not alone. Because of the condition of the markets, getting a loan will become increasingly more difficult.

Our credit scores reflect our behavior as borrowers. You may not consider your credit score as important as it was a few years ago being that it's so difficult to get any these days. Credit and credit worthiness still matter for many reasons. You may eventually need a new mortgage because you're relocating for employment or for any number of reasons. You may need your good credit to send a child to college. You may need it to continue using credit cards because your income has fallen or disappeared for awhile. Your good credit may help get you through the difficult, unexpected times that seem to inevitably sprout up on us from time to time. We can't always know when our credit may be a factor but if a need to borrow becomes apparent it could be too late to repair any credit problems.

Our credit is something that we still have control over. We can see our credit history and credit report in the privacy of our own homes by going to annualcreditreport.com . A copy of your FICO score which is the combined credit rating from 3 reporting agencies is available also at myfico.com . Currently the median FICO score is 720 but that number may very well change in coming months. As more people default on loans the average or median score will get lower.

If your considering a new mortgage the rule of thumb now is the larger the down payment the better the rate as long as your credit is good. If you don't have a large down payment there are still good loans available. FHA insured loans require as little as 3% down even if your credit score is below average. It would be great if these conditions for lower scoring people were available for other types of loans. Until they are our credit score is crucial to our survival and we can protect it, improve it and preserve it.

Check your credit report for any possible errors. Look for accounts you may not recognize and report any discrepancy to the credit bureau. They could be an indication of identity theft. Report any incorrect late payment recordings or other derogatory errors that could negatively affect your score. They should respond to your requests in no more than 30 days. Preserving our credit may seem like an exercise now but at least it's something that we each still have complete control of.

For more information on FHA or conventional mortgage requirements or for the latest available mortgage programs and rates call or email George Sinacori 561-306-6736. Visit GES Realty online or any of my websites to search for a home in Southeast Florida.