Real Estate Community Forum

I've heard that credit is important when purchasing a home or buying a car, but how important is it? There seems to be several different programs or specials that are available for those who have poor credit or no credit at all. I see it advertised all the time in newspapers, television, and radio. Are these simply gimmicks to get people in the door or can people really purchase things with a bad credit history?

Having bad credit will hurt your chances for being approved for a loan because they will see you as a risk. If you are approved for a loan, chances are that your interest rate will be extremely high. I've seen people with interest rates as high as 19% which is outrageous! No one should be placed in that position.

I have heard that car loans are much easier to be approved for than a mortgage loan. Many times I have head commercials that offer car loans for those with bad credit or no credit at all. These are always suspicious to me. It is best to read the fine print before signing any loan contract. You might be in for a surprise.

Having good credit is very important and is also being reviewed by many employers to determine how responsible a potential new hire might be.

It is obvious that when trying to buy/rent a home your credit history will be reviewed. Yes you will probably be able to get in the rental and you may even get the house but you will pay more money for it. The same goes for your automobile.

If you plan on starting your own business and need to take out a loan you will still need good personal credit to show your financial maturity and minimize the lender's risk.

In addition you need to have good credit to get the utilities turned on without having to pay a security deposit. And yes there are cell phones with monthly plans and no credit checks but to get the best deals you will need to have good credit.

The bottom line is to protect your credit as it travels with you for a lifetime.

Good Luck