It goes without saying that your credit score is important. Basically speaking, it dictates a lot of things in your life. For example, when you apply for a mortgage the lender uses your credit scores to help determine if they will lend you the money. The lower your scores the worse chance you have of being approved. In order to qualify for most mortgages and loan programs you actually need good credit. There are a few mortgage programs for people with less than perfect credit, however the interest rate is going to be a lot higher, which means your monthly payment is also going to be a lot higher too.
The reason that lenders would rather work with consumers that have good credit is due to the fact that they are less of a risk. That basically means people with good credit tend to pay their bills on time, which is less risk for the lenders. When a lender does approve an applicant that has lower credit scores they penalize them by raising the interest rate. That means you are paying more to borrow the money than someone with better credit. You end up paying more in the form of a higher monthly payment. For example, you could buy a house for the exact same amount of money as your neighbor, and put the same down payment.
In essence, your mortgage amounts are the exact same. The difference is you qualify for a higher interest rate based on your less than perfect credit. You end up paying hundred of dollars per month more. That adds up to thousands of dollars of the course of a year, and tens of thousands over the life of the loan. Just imagine what you could do with all of that money that you could be saving on your mortgage payment if you had good credit. The solution is credit repair. A professional credit repair company can help you get your credit scores fixed before you apply for a mortgage.
That way, you will not only have a far better chance of being approved for the loan, you may also be able to qualify for a much lower interest rate. Buying a new house is an expensive endeavor. It may be the biggest purchase that you make in your entire life. You need to make sure that you are doing it the right way. The bottom line is that the better credit you have, the better chances of being approved with a good interest rate.
If you are simply sick and tired of having bad credit and need some help getting it fixed, please contact us immediately. Legal Rights Advocates, Inc. is a consumer advocate law firm that focuses on consumer rights protection services across the Unites States. We have well over twenty-five (25) years of combined experience helping consumers that are experiencing Debt Collector Harassment, Social Security Disability issues, and a whole lot more. LRA is truly your consumer rights advocate. We take great pride in the fact that our job is to protect you from deceptive and or abusive debt collection practices.
LRA is an accredited member of the Better Business Bureau, and we have well over 500 Five Star Rating Reviews online from across the United States. Our goal is to assist you each and every step of the way regarding your rights for consumer protection. Please call us today for more information at 855-254-7841 or click here to visit our website. We look forward to working with you.
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