Improving Your Credit

Improving Your Credit

Raising your score one point at a time.

Improving Your Credit
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10/8/07 11:18 AM
About Us

Since many people are plagued with various credit problems, ImprovingYourCredit.net was created to aid them in improving their credit status. This site was made after we were reminded of how much a person with a low credit score could be at such a financial disadvantage.

For example, if someone with a credit score between 760 and 800 were to apply for a $250,000, 30-year, fixed-rate mortgage, they would qualify for a rate of 5.9%. This would then make their monthly payment $1,482.84. Now, if someone with a credit score of between 660 and 679 were to apply for the same exact loan, their interest rate would be 6.51%. Their monthly payment would then be higher, having to pay $1,581.81. Clearly those with scores lower than 760 would have to pay more. Someone with a credit score of 620 to 639 might qualify for an interest rate of 7.49%, making their monthly payment a mammoth $1,746.32.

In this instance, the person with a credit score between 660 and 679 would pay $1,187.84 per year extra in interest as opposed to the person with the outstanding credit score of between 760 and 800. Over the 30-year term of the loan, that's an extra $35,629.20 in interest fees alone. In the meantime, the person with the credit score between 620 and 639 would pay $3,161.76 per year extra in interest compared to the person with the good credit score between 760 and 800. This means that over the term of the loan, the person with the lower credit score would pay $94,852.80 extra in interest compared to someone with what would be considered excellent credit.

Therefore, if you have an above average or excellent credit score at this time, it is important to keep it up. There are far too many people that do foolish things that hurt their credit such as: making mortgage payments late or skipping credit card payments. The negative impact on their credit scores is devastating. One late mortgage payment alone that gets listed on your credit report could cause you to get declined for a loan. Or worse, if you attempt to refinance your mortgage, need to apply for a new mortgage as a result of a move, or apply for a home equity (or home improvement) loan or second mortgage, you might be offered a drastically higher interest rate with a loan containing extra fees.

We hope that the tips we offer here at ImprovingYourCredit.net prove to be useful. The methods and products mentioned in this site are meant to aid you in credit repair. In addition, over time, we hope that the suggestions mentioned in this eventually raise your credit score.
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