Credit Scores

A person’s credit score is vital in this economy. In fact, a credit score is vital regardless of the economy. A person’s credit score is important as far as getting a job, getting a house, etc. The problem is, in this economy, it is extremely difficult to maintain a good credit score.

It seems to be a never-ending cycle; if you miss so much as a single mortgage payment, it can negatively affect your credit score. If you have a lower credit score, you will likely not be able to find a job, which would lead to you not paying your mortgage on time. It is quite the puzzle. To qualify for a loan from Freddie Mac or Fannie Mae, you usually need a base credit score of at least 620.

Even if you have done nothing wrong, you are still at risk for a credit score drop. Credit card companies are often lowering their limits due to the recent economic activity, and some unsuspecting credit card owners are getting caught. Thirteen percent of people surveyed reported that their credit card companies had lowered their limits in the last few months.

This just goes to show you; everything is connected. The economy and the real estate industry are joined at the hip. Credit scores are a vital part of Americans’ everyday lives, and these scores are being jeopardized by the fluctuating real estate market.

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