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The Higher The Better: The Lifecycle Of A Credit Score

THE HIGHER THE BETTER: THE LIFECYCLE OF A CREDIT SCORE Isn't your credit score just something that hides away in the drawers of the three major credit bureaus? Nothing you need to worry about, right? You might want to take a closer look, because throughout your life your credit report and scores may be pulled for a number of milestones and events: AVERAGE NEW FINANCED CAR LOAN: BUYING A CAR $26,648 45% = $1,000 of auto loans in Q1 2013 went to subprime buyers TIP Consider setting a time limit within which to shop for and purchase your car. There is a window (varied by credit scoring system) during which all auto loan inquiries count as one inquiry, protecting your score. I IF YOUR PARENT(S) It may only take COSIGNED ON YOUR PAYING FOR COLLEGE STUDENT LOANS, A 1 MISSED DR LATE PAYMENT LATE PAYMENT COULD to ding your score HURT MOM OR DAD'S SCORE! THAT'S FOR THE LIFE OF THE LOAN: a missed payment 8888 8 YEARS Z888 in is still a missed payment? One study found that student loan debt may cost as much as $208,000 for an average household TIP Consider automatic debit payments to help prevent missed due dates. RENTING AN APARTMENT BUYING A HOUSE CONGRATULATIONS you'e ready to buy your frsthome! But if you need a mortgage, the Mortgage lenders typically pull all loan company will check your credit score to help determine 3 CREDIT REPORTS AND ALL 3 SCORES - for each person on the mortgage - to your interest rate aid in their lending decision 1 MANY RENTAL COMPANIES PROVIDINGA LOW RATE: НОРЕ THEY LIKE WHAT THEY SEE! REQUIRE A CREDIT CHECK Average in in ON POTENTIAL TENANTS 30-YEAR 4.6% July 3.9% July UP FROM FRM was 2013, 2012 8 Once you land a place, Here's an example from a lender as of September 12th, 2013: ON A $500,000, 30-YEAR FIXED MORTGAGE:' DON'T FORGET RENTER'S INSURANCE A LOWER credit score such as An AVERAGE credit score such as An EXCELLENT credit score such as - your credit score could affect your annual payment 649 620 680-699 740+ Interest Interest Interest 5.2% 5.1% 4.7% rate: rate: rate: MONTHLY RATE: MONTHLY RATE: MONTHLY RATE: TIP $2,208.81 $2,177.95 $2,086.59 You may wish to request that the credit check be the final step in your approval process. Alternatively, landlords may (but are not required to) accept a credit report you provide. TIP Consider combining homeowner's insurance with auto insurance - you may be able to save depending on your provider."0 8H " GETTING MARRIED "FOR RICHER OR POORER" Percentage of men who consider credit scores ) 57% PROBABLY IMPLIES “IN GOOD CREDIT AND BAD" TO0, RIGHT? during dating YET ONE SURVEY FOUND THAT 20% 30% OF WOMEN OF MEN of women 75% do the same" WOULDN'T MARRY SOMEONE O WITH A POOR CREDIT SCORE Getting married may not directly impact your spouse's credit score, but joint accounts or lines of credit can! 12 TIP A stickler for credit scores? There are dating sites that let you weed out potential mates by their (albeit self-reported) scores! 13 553 590 626 683 720 764 One study found that every STARTING A BUSINESS $1,000 You might be an avid saver, inheritance recipient, VC SUccess story, or the apple of an angel investor's eye in credit card debt decreases a small IF NOT business' chance IF NOT, A BUSINESS LOAN IS USUALLY IN ORDER TO GET STARTED of survival by OPEN Your credit scores play a factor in the size and interest rate of that loan 2% TIP Look into an EIN (Employer Identification Number) to separate your personal credit from your business' credit. 23 # # # # # # # 15 AFTER A FEW YEARS, IT'S HAVING A CHILD NOT ONLY YOUR SCORE NEW BABIES COULD IMPACT YOUR CREDIT SCORE IF YOU HAVEN'T BUT YOUR CHILD'S DIDENTITY O BUDGETED PROPERLY AND RELY TOO HEAVILY ON LINES OF CREDIT YOU CAN'T SUPPORT THAT YOU NEED TO THINK ABOUT! One report found that of children may be victims about of 10% identity theft " TIP Identity theft against children can easily go unnoticed since they haven't applied for credit orbank accounts yet. Think about checking your child's personal credit report by age 17 16. Retirement doesn't make financial concerns RETIRING go away-they may even be greater. TIP TOP 2 FINANCIAL CONCERNS THAT KEEP AMERICANS 50-64 AWAKE AT NIGHT (ACCORDING TO ONE SURVEY) Avoid closing long-standing lines of credit, even if you aren't using them. Closing accounts can impact your credit history and may reduce your available credit, potentially lowering your score. SAVING ENOUGH 19% FOR RETIREMENT CREDIT CARD 16% 18 DEBT" YOUR SCORES FOLLOW YOU THROUGH LIFE BEFORE ANY BIG BUYING DECISION OR LIFE EVENT, CONSIDER PULLING YOUR 3 BUREAU CREDIT REPORTS AND SCORES. THIS INFORMATION CAN HELP YOU SEE WHAT SPECIFIC CREDIT ACTIVITIES HAVE POSITIVELY (OR NEGATIVELY) IMPACTED YOUR CREDIT!" SOURCES 1 http://www.experian.com/ask-experian/20090318-impuct-on-credit-scores-of-inquiries-for-an-auto-loan.himl 2 http://www.forbes.com/sites/ashleaebeling/2013/05/13/five-credit-score-misconceptions-that-can-cost-you/ 3 http://www.huffingtonpost.com/2013/08/04/student-loon-debt- lost-wealth_n_3701087.html 4 http://money.usnews.com/money/blogs/my-money/2012/11/19/8--surprising-behaviors-that-may-hurt-0-young-persons-credit-score 5 http://www.consumerfinance.gov/askctpb/1305/who-may-request-my-credit-report.html 6 http://realestate.msn.com/article.aspx?cp-documentid=26554459 7 http://www.mint.com/blog/credit/why-mortgage- lenders-pull-all-three-of-your-credit-reports-0413/ 8 http://www.hsh.com/mtgfist.html 9 http://online2.statefurm.com/bank/mortgogeloanestimator/poges/xhtmls/loanEstimator.xhiml 10 hittp://www.consumerreports.org/cro/homeowners- insurance/buying-guide him 11 http://money.cnn.com/2013/07/24/pf/credit-score-dating/index.html 12 http://www.consumerfinance.gov/askcfpb/1283/ifi-have-bad-credit-score-will it-affect-my-fionces-score-if-we-getmarried.html 13 http://money.cnn.com/2013/07/24/pf/credit-score-dating/index.html 14 http://www.entrepreneur.com/article/224518 I5 http://www.usatoday.com/story/money/columnist/strauss/2013/04/15/steve-strauss-business-credit-profile/2076887/ 16 http://www.cylab.mu.edu/files/pdfs/reports/2011/child-identity- theft.pdf 17 http://www.consumer.ftc.gov/articles/o040-child-identity-theft" 18 http://www.strategicbusinessinsights.com/cfd/news/RMJ-V2N2final.pdf 19 http://money.msn.com/credit-rating/credit-tips-for-the-retirement-years 20 hittp://www.experian.com/ask-experian/20090318-impact-on-credit-scores-of-inquiries-for-an-outo-loan.html FREE ScoresAndMore.com- www.FreeScoresAndMore.com

The Higher The Better: The Lifecycle Of A Credit Score

shared by Dlewis08 on Jan 14
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The infographic displays ways that a credit score can impact future life events such as buying a car, getting married, or buying a house.

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