Put simply, credit ratings are a statistical method of assessing the credit risk of a loan applicant. The score is a number that rates the likelihood an individual will pay back a loan. The score looks at the following items: past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit, number of inquiries.
It is highly important to protect your credit rating, both for borrowing now and for later down the road. Paying your bills on time will improve your credit score, paying your bills even one date late will damage your score if reported, and habitual late payments will seriously erode your credit score. Late mortgage payments can quickly destroy your ability to borrow money anywhere
Mortgage & Debt FYI
Many self-help guides to getting out of debt suggest credit card debt consolidation
as helpful tool for debt management. Debt consolidation, in simple terms,
means taking all the money you owe to different sources, or in most cases,
different credit card companies, and putting it into one source of debt-either
another credit card or some other type of loan.
If you are diligent about either paying off your debt or switching again
to another low interest program before the low interest rate time period is
up, then you will be able to save hundreds of dollars in interest payments.
Request a FREE Mortgage Quote online and learn how a debt consolidation
loan could save you over $4,000 per year!