A Better Credit Score in 2008
Article summary: Achieving a better credit score will serve you will in 2008. This article explains why by taking a look back over past years.
In 2007, the world of credit and lending was turned upside down. It was actually a long time coming, but the mortgage lending "meltdown" all came to a head in 2007. And now, in early 2008, we have yet to see the full effects of this.
But one thing is certain. This credit and lending crisis has made it even more important for consumers to have good credit. By this, I mean that you should thoroughly review your credit report for accuracy and find ways to boost your credit score if it is lower than the national average (or even if it's just plain average). Here are some tips for a better credit score through fiscal responsibility.
In other words, as a modern consumer you must keep credit in mind when looking back as well as when looking forward.
Let's look at an example of why this is important. Let's jump into our time machine and go back to the mid 1990's:
Man, it sure is easy to get a home loan here in 1995. It seems like anyone can qualify for a mortgage, no matter how bad their credit is. They've got these things called subprime mortgages that make it really easy for people to get qualified and buy a home, and they have pretty good interest rates in the first years ... something about an adjustable rate mortgage.
Now let's travel back to the present:
Ouch. That subprime loan sure came back to bite me. As it turns out, that attractive interest rate didn't stay around for long. After three years, my mortgage reset to a higher rate -- a much higher rate -- and I just wasn't able to afford the payments anymore. The bank foreclosed on my home, and from watching CNN I gather that there are a lot of other folks in my situation.
Yes, there are a lot of folks in this situation right now. So many, in fact, that the federal government has increased its scrutiny of lending practices. Back in the 90's, many government officials were happy to ignore the economists who predicted future doom from "easy lending" practices. The money that mortgage industry lobbyists contributed to various campaigns made it easy for these government officials to turn a blind eye and ignore the prognostications.
And now what are we seeing? Now that the doom and gloom has become a reality, all of the politicians are getting on record as saying: "How did this happen? Ooh, those evil mortgage lenders just burn me up. They must be regulated!" But all you have to do is follow the money trail to see how many of these same politicians ignored the warnings of a mortgage crisis years ago.
Alas, I digress. Let's get back to consumer credit issues, why it's important for you to keep a better credit score in 2008 (among other worthy resolutions).
My point is this. As a consumer, it is more important than ever that you maintain good credit and be cautious about your spending. Lending institutions (those that are regulated anyway) have tightened their restrictions on lending. Thus, it's tougher to get a mortgage loans these days, or a line business credit, or any other form of financing for that matter.
So having a better credit score will open more doors for you.
Be cautious about your spending. Research all of your financial moves so that they are wise moves. Get a copy of your credit reports and scores to see where you stand. Work hard to strengthen achieve a better credit score this year. Make it a year of financial responsibility.
In 2007, the world of credit and lending was turned upside down. It was actually a long time coming, but the mortgage lending "meltdown" all came to a head in 2007. And now, in early 2008, we have yet to see the full effects of this.
But one thing is certain. This credit and lending crisis has made it even more important for consumers to have good credit. By this, I mean that you should thoroughly review your credit report for accuracy and find ways to boost your credit score if it is lower than the national average (or even if it's just plain average). Here are some tips for a better credit score through fiscal responsibility.
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In other words, as a modern consumer you must keep credit in mind when looking back as well as when looking forward.
Let's look at an example of why this is important. Let's jump into our time machine and go back to the mid 1990's:
Man, it sure is easy to get a home loan here in 1995. It seems like anyone can qualify for a mortgage, no matter how bad their credit is. They've got these things called subprime mortgages that make it really easy for people to get qualified and buy a home, and they have pretty good interest rates in the first years ... something about an adjustable rate mortgage.
Now let's travel back to the present:
Ouch. That subprime loan sure came back to bite me. As it turns out, that attractive interest rate didn't stay around for long. After three years, my mortgage reset to a higher rate -- a much higher rate -- and I just wasn't able to afford the payments anymore. The bank foreclosed on my home, and from watching CNN I gather that there are a lot of other folks in my situation.
Yes, there are a lot of folks in this situation right now. So many, in fact, that the federal government has increased its scrutiny of lending practices. Back in the 90's, many government officials were happy to ignore the economists who predicted future doom from "easy lending" practices. The money that mortgage industry lobbyists contributed to various campaigns made it easy for these government officials to turn a blind eye and ignore the prognostications.
And now what are we seeing? Now that the doom and gloom has become a reality, all of the politicians are getting on record as saying: "How did this happen? Ooh, those evil mortgage lenders just burn me up. They must be regulated!" But all you have to do is follow the money trail to see how many of these same politicians ignored the warnings of a mortgage crisis years ago.
Alas, I digress. Let's get back to consumer credit issues, why it's important for you to keep a better credit score in 2008 (among other worthy resolutions).
My point is this. As a consumer, it is more important than ever that you maintain good credit and be cautious about your spending. Lending institutions (those that are regulated anyway) have tightened their restrictions on lending. Thus, it's tougher to get a mortgage loans these days, or a line business credit, or any other form of financing for that matter.
So having a better credit score will open more doors for you.
Be cautious about your spending. Research all of your financial moves so that they are wise moves. Get a copy of your credit reports and scores to see where you stand. Work hard to strengthen achieve a better credit score this year. Make it a year of financial responsibility.
Labels: Credit scores
posted by Brandon at
9:49 AM
