This week’s post is to address the tall tales of the dreaded Credit Score. I have included both general topics that you should know as a credit score holder, and direct topics concerning the credit issues that we, at the Mr. Ed Department, look at to help you, our customer, make your next financial move.
Myth: A poor credit score will haunt you forever.
The truth is your credit score only contains the last seven years of your financial history. That means bad moments in your credit history will fall off eventually and be taken out of your calculated score. Time heals all things…so the longer it has been since your last late payment, the better.
More importantly, your credit score is used to tell credit lenders about your general spending behavior. Bad credit can be caused by any given number of circumstances: divorce, job loss or pay reduction, overuse of credit cards, etc. So a bad credit score doesn’t necessarily mean you can’t be considered for loans or credit accounts. Your credit history reflects those unexpected events that caused your financial situation some unsteady times, and lenders know it. Bad things just happen sometimes.
Also, keep in mind that your credit score is not the only factor as to whether you qualify for a financial loan. At the Mr. Ed Department, in addition to your credit history, we also look at your current income and employment history. That way, our experts know how to find the quickest way to get you in a car you love at a price you can afford.
Still concerned about your credit score? Don’t worry! Getting approved for an auto loan with Mr. Ed helps build your credit! Having an installment loan, such as a car loan, helps your credit score. And we only work with companies that report your installment loan to the credit bureaus, that way your continuous payments stand out in your history.