Numerologists claim that there is a mystical connection between numbers, or series of numbers, and events that happen in your life. Here at the Homeownership Center we can’t answer paranormal questions but we can say that there REALLY IS a number that impacts your financial life and long-term homeownership success.
That number is your credit score.
The good news is that this number isn't mysterious… you can learn what your score is and – even better – learn how to improve it.
Your credit score is important. A low score not only means that you'll pay higher interest rates on mortgages, car loans, credit cards and other loans, but it can also prevent you from getting an apartment, keep you from being hired for a job you want, or cause you to pay more for insurance coverage.
A strong credit score is the key that unlocks the door to better loans, cheaper car insurance and more. YOU CAN build a good score and LSS Financial Counseling, a member of the Homeownership Advisors Network along with US Bank and Freddie Mac want to show you and your clients practical ways to improve your score at a free event next week:
- Learn how to improve your score after a financial setback
- Understand the credit scoring system and the steps to take to improve your score
- And much more.
Event Information:
DATE: Wednesday, November 6th, 2013
TIME: 7:00 – 8:30 pm
LOCATION: Center for Changing Lives
2400 Park Avenue S, Minneapolis, MN 55404
The event is FREE and everyone who attends will be entered in a drawing for a $50 gift card door prize!
An interesting article on the SFGate blog from the San Francisco Chronicle highlights new guidelines adopted by the "Consumer Data Industry Association" (the organization that represents credit bureaus - the people that track our credit scores). Under the new guidelines, lenders should report loan modifications made under the Making Home Affordable (MHA) program as "loan modified under a federal government plan".Until now, individual lenders reported modifications to the credit bureaus differently. Some reported them "paid as agreed" which didn't affect scores, while others reported them as "partial payment" which can have an extremely negative impact on credit scores - - as much of an impact as a short sale or even foreclosure.If homeowners fall behind (one of the requirements for a MHA modification) lenders will still report the delinquent payments (30 day late, 60 day late, 90 day late, etc.) so there is no way to avoid at least SOME damage to a credit score with a modification - but if a homeowner is current during the trial period - banks should report those modified payments as "current."HOWEVER... here's the catch... FICO, the country's best-known provider of credit scores (the famous "FICO Score") has said that they will, over the coming years, analyze "accumulated data" to see if there is any predictive value of the new "loan modified under government plan" on payments... which will determine how much the new category affects a credit score IN THE FUTURE. For now, the category does not either help or hurt a credit score.Regardless of the impact on score... homeowners need to understand that a creditor might deny them credit (car loan, store credit, rental agreement, etc.) if they see the "loan modified under governement plan" on a credit report. Just something to keep in mind.If you are falling behind in payments... and think a modification might work for you, contact a free, non-profit Housing Counselor in your area for assistance with a modification... or to see if there may be any other help or assistance available to you. For help in Minnesota, click here.
