Do You Underestimate the Importance of Credit Scores?

Even if you are not in the market to buy or refinance right now, it's important to look out for your credit score, since it can take months to fix mistakes. The good news is that it is not as mysterious as you may have thought! Check out the links below for a concise explanation and specific steps to improve your score!

"While the nation's credit-scoring program is a critical factor in determining what individual borrowers pay in interest on credit cards and mortgages — and even how much they pay for insurance — new research suggests that most Americans still do not understand how the system works.

Respondents to a recent Consumer Federation of America/Washington Mutual Inc. survey largely did not know that credit scores are derived from payment histories, with many participants mistakenly believing that the number is influenced by such factors as income, age, education, and marital standing.

According to Anthony Vuoto of Washington Mutual Card Services, if all consumers took steps to boost their credit scores by at least 30 points, they together would realize as much as $28 billion annually in savings."

For the full Boston Globe / Realtor magazine article: http://www.realtor.org/RMODaily.nsf/pages/News2008071104?OpenDocument

For information about how to improve your credit rating: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer27

For information about how credit ratings are calculated: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/buyer28