Tag Archives: home affordability

Debunking Common Credit Score Myths

What’s your credit score? This is a question that defines so much in our lives. It determines loan rates, the ability to refinancing a home, credit card rates, and the list goes on. Your credit score is a magic number that’s kept in secret by the major credit score agencies because for the longest time, FICO didn’t want consumer to even know that these scores were out there. They sure weren’t even going to let people know what exactly went into giving a score. It wasn’t until early in 2000 that the curtain was pulled back a little and customers were given a chance to see their FICO scores. This was due to tremendous pressure from both politicians and consumer advocates. Now people have a better understanding of what they can do to improve their credit scores to give them a better shot at the best rates. That knowledge, however, is a double sided coin that has lead to many myths being passed along to improve scores.

One such myth is as long as you handle finance properly, then the credit score will just take care of itself. The problem with this thinking is that a credit score doesn’t simply examine your financing health. Credit scores tell lenders how likely you’ll default based on how you handle credit which is why having no credit can be just as bad as poor credit.

Another rampant myth in credit scores is that to have a good score you must carry a credit card balance. What’s being reported to the agencies is the balance from your last statement, not a leftover from when you got the statement and paid it. This myth can cause people to carry debt that is completely unnecessary under the belief that it affects a credit score in a positive manner. This is not true, and you should pay your bills in full anyway just to avoid interest.

Next myth that needs debunking is that you should never close an account if if can be helped. This falsehood exists because people are under the impression that closing unused accounts can help scores. That just isn’t true. Having unused or available credit can actually be seen as a low-risk factor viewed favorably by FICO. Closing a credit card removes available credit. Just shutting down unused accounts will not instantly improve your score.

These are just a few of many of the credit myths that have managed to weave their way into society. It’s hard to blame anyone seeing as how the credit agencies keep everything about the process so secretive. For anyone looking to finance a car, it’s important to have a grasp on your credit score. That being said, Approved Loan Store is looking to work with you, should you have excellent or bad credit. Go to the website today and check out how they can help you find the car or truck of your choice at an affordable price with the best rates. Follow on Facebook as well so you can view all future tips and news.

Image: FreeDigitalPhotos.net

4 Percent Rates Spur Rise in Home Purchases

Hoping to jump-start home sales, lenders have been slashing their loan interest rates to under 4 percent for many consumers.

According to facts released Thursday by Freddie Mac, 30-year fixed-rate mortgages (FRM) were averaging 3.99 percent. 15-year FRM were at an average of 3.27 percent, and adjustable rate mortgages (ARM) were staying low as well with a 5-year Treasury-indexed ARM of 2.93 percent and 1-year Treasury-indexed ARM of 2.8 percent. Lenders are hoping that these low interest rates will make people rethink home ownership, and so far, it has paid off. Home loan applications spike to a four-month high after Thanksgiving.

This is great news for people thinking about buying a home. These lower interest rates combined with the recent drop in unemployment mean that being a homeowner is attainable for more Americans, and people are taking advantage of the opportunity. 2011 was a tough year for the American people, and it is heartening that so many are giving new meaning to the phrase “home for the holidays.”

If you are looking for a new home, click on the Approved Home Loan tab above to qualify for the best available interests rates, and try out our Home Affordability Calculator here. You can also like Approved Loan Store on Facebook and follow industry trends on our blog.

Image: Simon Howden / FreeDigitalPhotos.net

Approved Loan Store Provides Financial Tools, Competitive Deals to Consumers


Approved Loan Store Provides Financial Tools, Competitive Deals to Consumers

New York, NY – October 28, 2011 – For people looking to purchase their first home, buy a new car, or get approved for a loan, the process can be daunting. Most consumers don’t know where to start looking to get the best deal, and with poor or challenged credit, finding a bank or dealership is even tougher.

There are online resources available, but oftentimes consumers spend more time weeding through the junk than finding good deals. With their combination of social media savvy and good old-fashioned networking, Approved Loan Store hopes to change how people shop for a loan. Approved Loan Store is a network of banks, car dealerships, mortgage bankers, and other lenders who want to give consumers, particularly ones with poor credit, the best available interest rates.

Additionally, Approved Loan Store is a resource for financial education. Approved Loan Store founder Todd Campanella recently spoke about his intent in starting ApprovedLoanStore.com, stating, “I created ApprovedLoanStore.com to offer consumers the best financial resources to accommodate their needs.”

To that end, sections of the website are dedicated to credit cards, credit repair, and other topics that consumers face on a daily basis. Consumers with challenged credit can also seek help through the website with advice on improving credit health and referrals to credit repair services. There are also calculators that consumers can use to find out if they can afford a house or how much they are spending in interest on their credit card. Approved Loan Store is also utilizing newer technologies and social media like Twitter and Facebook to bring people more financial advice and news daily.

There is a perception that tools like Approved Loan Store are for people with poor credit, and consumers with good credit won’t have to shop around for a good deal. In reality, a consumer with very good credit have the most potential for getting a great interest rate and benefit the most from shopping around. Anyone can search for a better deal using Approved Loan Store whether they have a stellar credit history or they have survived a rockier financial history.

Rachel Godfrey
New York, NY
Phone: 877-217-2217