Your Credit Score: Those three little numbers can have a six-digit impact on your life.
As author Tirone says, "Your credit score is your financial reputation. More than just a three-digit number, it is your key to the best house money can buy or the reason you might have suffered years of sleepless nights."
Obviously a lot has changed in the housing market in recent years but buying and owning your own home is still a big part of the American Dream. A high credit score will let you purchase a better home and pay less than someone with a poor credit score.
The author says that credit counts for 70% of your mortgage application. But credit affects more than your home loan. It can also affect your car loan, credit card and insurance rates.
This is such an important topic to us all, but realistically few of us will sit down and read all 150 pages. The author realizes this and provides a nice Key Points section at the end of each chapter that provides a synopsis of the important points in that chapter.
It is interesting to read the 22 criteria that determine your credit score such and 13 criteria that do not. Did you know that your salary does not affect your credit score?Neither does your education level, the number of years you've lived in one location, occupation, age or even bounced checks (unless the debt was turned over to a collection agency).
The author also dispels 11 myths about credit. For example, Myth #3 is 'If I close some of my credit card accounts, I will have a better score.' Tirone advises that once you have opened an account, you should generally keep them open.
The bulk of the book is examples, explanations and working advice for the 7 steps. The 7 steps to a 720 credit score are:
- Keep your credit card balances under 30% of your credit limit
- Have at least three revolving credit lines
- Verify the accuracy of your report credit limits
- Have at least one helpful active or paid installment loan on your credit report
- Remove high-priority errors from your credit report
- Negotiate for a letter of deletion before paying a bill in collection
- Create a structured plan to protect your credit.
The book has a lot of examples to explain and lead you through the steps. You can also order a workbook with forms and worksheets.
There are a bunch of quick practical tips such as 'Always apply for credit using the same name.' So if you are Robert M. Jones, don't have some account as Bob Jones, some as RM Jones, some as Robert Jones and so on.
The investment of time and a few dollars for 7 Steps To A 720 Credit Score may lead to a dramatic improvement in your financial status.
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