Understand Credit Scores

Credit scores are used by creditors and lenders to determine whether they will lend you money and what terms (interest rate, how much, etc.) you will be offered. Boosting your credit score will result in considerable savings—better loan terms and lower interest rates. Interest-only and other sub-prime mortgage loans—those with less than stellar terms sold to borrowers with low credit scores or not enough money—have resulted in foreclosure for many homeowners when they couldn’t afford the hiked payments.

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