THE IMPORTANCE OF A GOOD CREDIT SCORE

The Credit & Banking Law Group, P.A. provides legal services under federal law including the Fair Debt Collection Practices Act ("FDCPA") and Fair Credit Reporting Act ("FCRA") to help people resolve their credit issues due to inaccurate and derogatory information contained in their credit reports. Your credit history and your credit score will determine what interest rate you pay on a home, auto or other loan, or for a credit card. In fact, your credit history will determine if you will even be approved for credit!

Here are just a few of the ways that a low credit score can adversely affect your life:  

• Higher interest rates and fees
• Higher insurance premiums
• Higher security deposits
• Difficulty in getting loans approved
• Difficulty in obtaining employment

NEGATIVE ITEMS AFFECT THE INTEREST RATES YOU PAY

Most lenders use credit scores and  cutoff points to determine who gets the best interest rates. For example, the best mortgage rates are reserved for people with credit scores over 700. Even one minor inaccurate item on your credit report could result in reducing your credit score by 25-30 points.

The difference between a $150,000 mortgage at 6% versus 9% is $307 per month. Over the life of a 30 year mortgage that amounts to over $100,000 in extra interest payments!

Most credit card companies will not approve an account if there is any derogatory information of any kind on your credit report. This means any inaccurate derogatory account on your credit report will usually result in a credit denial for a low interest credit card or similar account.

Some landlords base their security deposit decisions entirely on the prospective tenant’s credit history. A low credit score can label you as "high risk", resulting in a higher security deposit than others who would rent the same apartment. Additionally, consumers with a low credit score will often be required to put down security deposits to establish service for cell and home telephone, and cable or satellite service.

Credit report errors and identity theft fraud do not correct themselves. You must be proactive and seek professional help in the event that you need to correct credit report errors or fraud.

The Credit & Banking Law Group, P.A. offers a multi-faceted approach to correcting your credit report which determines your credit score. We will work with you to devise an action plan for things that you can do to improve your credit score and correct inaccurate information on credit reports.

 

Don’t wait! Call us today for a FREE CONSULTATION!

1-800-577-4909