Here, we meet three consumers who offer insights, hard lessons, and pleasant surprises from their
first time checking their credit scores. Because even a newbie can help you choose lenders for major
purchases, now and down the road.
A newspaper sports editor in Newport News,
Disappointment, Then Hard Work
If you assumed her credit score was fine andpaid their bills on time. But when their mortgage broker
pulled their score before they bought their first home, And then was disappointed to discover a
number in the 600s. "We wanted it to be higher, They neede a number in the 700s to qualify for their purchase.
Fortunately, they worked for a credit-counseling agency, and colleagues gave her tips on
which credit cards to pay off first and quickly settled the small balances, and they
didn't close any accounts, which they learned could harm their scores. They also picked up tricks like
paying their bills five days before the due date.
The Six-Month Workout
"We had to bring our balances down and bring the poor credit score up during a six-month period,
But their diligence paid off. Her score jumped to the 700s, and she and her husband
bought a home.
Give Yourself Time
Consumers are often surprised by a low number -- and that it can be too late to raise in
time to buy a house or car. He recommends getting your number six months to a year before you expect a
big purchase, to give yourself enough time to pay down balances. At the same time, opening new cards and
closing existing ones can damage a credit score.
But credit scores also factor into insurance rates, and even potential jobs: employers are increasingly
checking scores as part of the application process, "People don't realize how much of an
impact their credit score has on their life."
Think you're ready to apply for a mortgage or long-term loan? If your credit score is too low, think again.
Consumers usually need a score of 700 or above to qualify for the best interest rates. But don't fret if your score
isn't quite at the 700 mark. Here's how some experts suggest raising your credit score in six months or less.
