Credit Scores affect everything you do -, Albany News, Weather, Sports

Credit Scores affect everything you do

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By Ryan Houston - bio | email

ALBANY,  GA (WALB) –Credit is very important in today's society. And with the current economic climate your credit can take a hit.

According to the Fair Isaac Corporation nearly 43.4 million people now have a credit score of 599 or below.

Things like foreclosure and delinquency on payments weigh heavy on your credit. And let's say you lost your job, and therefore you can't pay the mortgage. If that happens your credit score can drop 150 points.

And that can take years to rebuild. Having a good credit score is very important. "Credit is so important because it gives you buying power and credibility," said Yvette Ponder.

And she learned that from someone very close to her. "My mother always paid her bills on time she taught us to save, invest and pay our tithes," said Ponder.  

But everybody doesn't get that type of teaching on spending."Building credit is important to you in the long run," said VP of AB&T bank, Leslie Murphy.

Having a good credit score will come in handy especially when you try and make large purchases. "It's extremely important it can prohibit you from getting cars, houses and loans," said Murphy. 

But there are a couple of things you can do to improve your credit score. "You really must pay your bills on time and if you can't pay on time negotiate with creditors," said Ponder.

"Length of a credit file and how long you've established credit in a satisfactory manner," said Murphy. No one can fix your credit score but you. All it takes is making a plan of action.

"Timely payments is the number one rule of the game," said Murphy. So actually paying bills on time will help you in the future.

Also your credit score can be lowered when you use more than 50 percent of your available credit limit. Experts say opening several new credit accounts in a short period of time can also lower your credit score.

And having too many credit report inquiries can be seen by lenders as risky behavior. 

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