Tuesday, November 9, 2010

Why Care About Your Credit Score?

Most people can't afford to make the big purchases in life (i.e. house, car, or business) without looking to some sort of a loan or financing for help.  When applying for a loan, your credit score is able to give a quick assessment of how much risk you pose to the person or company lending you the money.


Your FICO Credit Score (median score between the Equifax, Transunion, and Experian scores) takes into account your past and present borrowing history including magnitude, payment history, and any public records such as a personal bankruptcy.  The higher your credit score, the less risk you pose to your lender, and the less your cost of borrowing will be.

Ultimately, you should take care of your credit score so that your cost of borrowing will be as low as possible given the amount of assets you own and income you make.  However, if you have plenty of cash, you can just buy anything you want with "straight cash homey."  After all, that's how Randy Moss rolls:

56 comments:

  1. Welcome to my blog! Please leave your comments below...

    ReplyDelete
  2. lol at the video. I'm working in my credit score, I want to buy a home in the future =), Good stuff you have here, I'm following you

    ReplyDelete
  3. My credit score could use some improving

    ReplyDelete
  4. Good to know mate - also great vid.

    ReplyDelete
  5. cheers dude, this is some good stuff, I appreciate the info.
    followin!

    ReplyDelete
  6. Straight cash never steered anyone wrong haha

    ReplyDelete
  7. I'm kind of glad i havent even started on credit yet.

    ReplyDelete
  8. Better to not have any loan at all !
    Good looking blog by the way :)

    ReplyDelete
  9. Here in Belgium there is a totally different system on loans and credit. I think it is much stricter and rigid than the U.S. system.

    ReplyDelete
  10. Nice blog man , lol'd at the video..

    ReplyDelete
  11. True.
    good read! :) ill follow you to check out updates!

    ReplyDelete
  12. Hahaa :D That video cracked me up.

    ReplyDelete
  13. Good reminder that we should always pay back our loans on time.

    ReplyDelete
  14. good post, its true you need a good credit score. or straight cash homey!

    ReplyDelete
  15. Credit score is very important

    ReplyDelete
  16. i don't even know my credit score.. probably not a good sign ^^

    ReplyDelete
  17. So high credit score means less cost for borrowing? Or just that more people will be willing to lend you money?

    ReplyDelete
  18. I want a home of my own one day...but my boyfriend has a good job where we live (Long Island, NY), and even small homes are really expensive. Maybe one day :(

    ReplyDelete
  19. Thanks for the info. I need to learn more about credit repair.

    ReplyDelete
  20. I've had my credit score checked a few times by apartment rental offices.

    ReplyDelete
  21. credit score is hard to understand because its so intangible. nice post

    ReplyDelete
  22. Great post! I really needed the info. Thnks!

    ReplyDelete
  23. great video, thanks for the tip

    ReplyDelete
  24. that's so hard to understand oO

    ReplyDelete
  25. Everybody should care about his credit score but it's so easy to lower it. Even if you're working hard for your money, you could only be late in one of your payment and it would be already too late!

    ReplyDelete
  26. Getting loans for cars or homes are probably very low priority in this economic mess.

    ReplyDelete
  27. Good work, unfortunately I don't live in the states

    ReplyDelete
  28. My creditscore is great! I also like the video.

    ReplyDelete
  29. i've actually never looked up my credit score. i havent had a problem getting credit anywhere though so no biggie i guess, right?

    ReplyDelete
  30. lol, is that randy moss? hilarious.

    ReplyDelete
  31. person in the video got it all haha

    ReplyDelete
  32. Glad we dropped that bum. I never liked him, he was always too cocky./

    ReplyDelete
  33. Good post! Looking forward to reading you next one

    ReplyDelete
  34. Credit score is very important in life :)

    ReplyDelete
  35. If my credit is purposely set low, does it affect my credit score? since I am not making "big" loans

    ReplyDelete
  36. i have very little credit, hopefully your posts can help me get some

    ReplyDelete
  37. haha straight cash money! that's what i'm talking about

    ReplyDelete