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Last Updated: July 4th, 2018
Time to read: 3 minutes
Consumer credit is a key part of American economy. Having a strong credit history is ideal when it comes to making major purchases such as home, car or even student loans. Banks, lenders or any financial institution that helps consumers with financing, uses the consumer’s credit score as the key factor to determine the level of risk associated with the loan. In general, a lower credit score (less than 640 credit score) means that you are likely to be perceived as high-risk borrower and similarly, a high credit score (higher than 640) means that you are likely to be perceived as a low-risk borrower. The higher the risk perceived means you will most likely be turned down or offered loans at a higher interest rate.
Everyone should review their credit profiles at least every 6-12 months to insure it is accurate. One in five consumers is likely to have errors in their credit file. Inaccurate account information can increase the likelihood of being turned down for your loan or having high interest rates. Credit scores range from 300 to 850. Regardless of your credit score, if you have accounts that show late payments, charge-offs, or delinquencies then your loan application is less likely to get approved.
Below is an example of how low credit scores can cost you thousands of dollars.
For a 30-year-fixed rate home mortgage loan of $200,000 with 20% down payment:
A 15-minute free credit file review could help determine the quality of your credit file but also uncover if you have one or more accounts that have inaccurate or outdated information. Our free initial consultation has no negative effect on your credit score. If you like what you hear, we can enroll you in a credit repair program for a low monthly fee and we’ll work with credit repair agencies to fix errors on your report. For over 14 years, Ovation Credit, a division of LendingTree, has helped more than 200,000 thousand consumers with providing a free initial credit consultation.
800-555-1212 Free Credit Review