Good Credit Score: The Facts

Written by on February 15, 2011 in Money - No comments | Print this page

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Credit CrunchIn general, we believe that in life, everything that is good is desirable. When we have all the good things; we believe that we will have all the things we would desire. If we have good looks, we believe that we will get the person we desire. If we have a good voice, we believe that we can win a singing contest. If we have a good body shape, we believe that people see us as sexy. If we have this thing, we believe that we can have the other.

But if we stop for a moment, take a breather, and take a close look at reality, things don’t really work that way. Men with good looks don’t always get to have the hottest women; there are even times when the jerk gets all the ladies. The highest reaching voices don’t always get the trophy. And a great shape doesn’t always make a woman sexy.

These ideals are misleading us because we always believe that one thing, and that only one thing and nothing else, will lead us to another desired outcome. But this isn’t the case; we fail to see that the results of things are all by-products of the interaction of many factors and this principle is applicable to everything, including the use of credit ratings. This means to say that a good credit score doesn’t always lead to a favorable result when one applies for loans and mortgages.

True, a good credit score would really help in applying for loans – it is the biggest factor, in fact. But seeing people with good credit ratings have their applications for loans denied is not an ultra-rare sight. This is because companies that grant credit not only look for a good credit score but they also consider your employment.

Times are really tough right now, and the financial and real estate market are becoming stricter than ever. Loan companies are looking for more than just a good credit rating; they are also after the predictability of your income, the stability of your income, the ratio of your income to your debts, the frequency of your credit card usage, and many more – depending on the guidelines of the company.

Now, this is not to say that a good credit score is not important at all. In fact, as it was said earlier, it is the first thing that creditors look at. However, people should not get so consumed in the idea of getting their credit ratings high. Remember, a good credit rating is just a good credit rating. It is not the measurement of your wealth; it is just the measurement of your performance in managing your bills and debts.

So what should you focus on? Should it be on getting your credit score to a rating of 850? Or should it be on securing your personal finances by getting yourself rid of all the debts that you have as soon as possible, or by paying your dues on time? Focus on your performance, the rating will follow.

There’s more where this came from.  The Credit Doctor has useful and easy to use information that will help you fix your credit.  Find out for yourself what is a good credit score.
Image: Grant Cochrane / FreeDigitalPhotos.net

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About the Author

Alana Johnson

Alana Johnson tries to enjoy the simple things in life and writes for the Lifestyle category on Quality Life Resources. Living in the small New England town of Norwalk, CT, she looks forward to the warm summer months. To submit your own article for my category, please click HERE. View all Self Improvement articles.