Don't Rely on the Luck of the Irish to Improve Your Credit Scores!

Don’t Rely on the Luck of the Irish to Improve Your Credit Scores!

 

Credit and credit scores aren’t typically something that people worry about until they need to… like when they want to buy a house, finance a car, or apply for a loan or credit card.  All of the sudden, when these life events occur, credit vaults to the top of the “list of important things”.

Unfortunately, top tier credit doesn’t happen by chance or as a result of good luck.  It happens as a result of doing certain things the right way for an extended period of time.

If you’re in a position where you experienced a job loss or a decrease in household income, resulting in negative credit items on your credit report, those items don’t go away by chance or by luck either.  It takes YEARS for it to happen.

We see this situation all of the time…

A smart and well-intentioned married couple applies for a mortgage loan because they have found their dream home.  All of their bills are current and they have stable jobs, so they think that the mortgage process is just a formality.  However, they forgot that 2 years ago, during a period where expenses exceeded income, they had multiple late payments on several credit cards and a car payment.  They have since recovered from these delinquencies, but failed to consider that the credit bureaus didn’t forget!  Their scores are low and this either causes them to get denied by the mortgage lender, or it makes them pay a MUCH higher interest rate – making their dream home impossible to attain.

How could they have avoided this situation?

Once they were caught up on their payments, rather than thinking they were ok, a few months of credit repair service could have removed all of the negative items from their credit report and skyrocketed their scores before they ever needed that new mortgage loan.  Instead, they figured that since they were caught up financially, their credit scores would “catch up” as well.  This clearly isn’t the way it works – credit bureaus have long memories!

So if you’re financially in a good place but you know that you have had some credit challenges in the past 7 years, don’t leave your credit recovery up to the leprechauns!  Take control of your credit situation and get those negative items removed before they have a chance to haunt you.  Give us a call and we’ll explain the entire process.  We leave nothing to chance!