CREDIT IMAGE COUNTS!

What is a Credit Image?

Your Credit Image is a snapshot (like a photograph) of your credit worthiness at a fixed moment in time.  A large part of your Credit Image is your credit score, although increasingly other factors are being taken into consideration.

Why is your Credit Image so important?

With the rise of technology that can assess consumer creditworthiness while you wait, credit scores are being used to make financial and lifestyle decisions about you on a regular basis.  The image your score communicates affects these decisions and sometimes you may not even be aware this is happening. What you don't know CAN hurt you!

The following information found in an issue of AARP magazine sums it up: "According to...the U.S. Public Interest Research Group (PRIG), 79% of credit reports contain errors, and 25% have mistakes serious enough to cause consumers to be denied credit, loans, housing or even jobs."  As many as 9 out of 10 people may have something that needs to be removed from their credit reports

How is your Credit Image affecting you?



Mortgage Rates - Buying a home is often the largest investment you will ever make. The interest rate you are able to obtain can vary widely based on your credit score. Reducing your loan rate by just half a point can save you $22,000 over the life of a $200,000 loan.



Car Payments - Many cars now cost as much as homes did thirty years ago. A car will probably be your largest investment after buying a home. Unless you are paying cash, car dealers will be running your credit reports and offering financing rates based on your credit score.


Rental Housing & Utilities - Did you know that many landlords are now checking credit scores before they decide whether or not to rent to you? Utilities may also require larger deposits from people with low credit scores.



Insurance - Credit scores can impact insurance rates. The Insurance Information Institute, a New York based industry group, reports that insurance companies have found a correlation, statistically, that "people who have poor credit scores file more claims than those who don't." Where companies see more possible risk, premiums are likely to rise.



Credit Cards - If you have damaged credit, you may not be able to qualify for an unsecured credit card. Any accounts you do qualify for will typically have high rates and low limits.



Jobs - The number of employers examining the credit histories of potential employees is growing. Don't let a poor credit image derail your prospects in today's very competitive job market.



Business Credit - Many banks want to base credit offered to your business on your personal credit score.