“Credit Scores Controlled by Who?”
For years I have heard clients say, that banks and lenders control their credit scores, and I have never understood how anyone can get to that assumption. It is almost like they believe, that the banks and lenders will do anything to turn loans down. That is just not true.
I have been harping for a long time that many of the guidelines are too restrictive and the time needed to close a loan is much too long, but banks and lenders can’t make any money unless they close these mortgages.
Nearly half of all Americans may believe that lenders – rather than consumers themselves – control their credit scores, according to a recent survey.
Polling 300 respondents in February, FreeScore.com uncovered figures in February that suggest that 47.2 percent think that lenders levy a significant measure of control over their credit scores, with 64.7 percent of respondents in agreement with notions that the economy impacts personal credit scores.
By the same token, roughly 19 percent of respondents said they think they can control their credit scores, with about 35 percent saying that the economy does not affect theirs.
The Web site was quick to call these beliefs “mistaken” in a related statement.
“Consumers are in control of their financial lives, not lenders. And, the most important factor in maintaining good credit is to pay your bills on time. By being up-to-date on payments, consumers are in the driver’s seat when it comes to managing their credit status,” Carrie Coghill, director of consumer education for FreeScore.com, said in a statement.
The results found that more than four in five consumers, or 80.8 percent of respondents, agree with notions that their credit scores remain firmly in their control.
The practices they prescribe? Follow “best practices” by deploying credit properly, reining in unnecessary spending habits, and living within one’s earning power.
Added Coghill: “[Y]ou need to know where you stand, which is why it’s prudent for consumers to check their credit scores from each of the bureaus on a regular basis, and monitor their scores and reports regularly.”
The Web site suggested that the beliefs may be the result increasing scrutiny over the role of interest rates in today’s environment.
It said in the statement that signs continue to emerge that “tight lending practices could now be loosening,” especially with Freddie Mac’s decision to do away with the minimum credit score requirement for refinance applicants earlier this year.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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