Your credit score could make or break you in 2008. With all
the foreclosures and defaults on credit cards, banking
guidelines are getting tough. During the "Real Estate Boom"
just about anybody could get a loan. Mortgage companies
were just giving money to anyone that came along. Someone
pulled the wool over the eyes of Wall Street. I personally
was doing loans that I knew would default, but if I had
denied the loan, they would have went somewhere else. The
guidelines where so liberal that anyone with a job could
have got a mortgage. Even credit card banks were extending
credit to high risk borrowers. Now our banking and lending
institutions are in a major clean up transition. I have
noticed that some of the new guidelines for lending this
year are getting to the point where good credit will only
be allowed to get loans. It's amazing how Bankers swing
from the left to the far right to make an adjustment when
it comes to Credit Risk. Freddie Mac and Fannie Mae of
course are in business to make money, so it's really like a
cycle. Underwriting guidelines will tighten up, and then
they will loosen back up.
So the question is, how long will it take for Creditors to
loosen up on credit risk guidelines? Believe it or not, the
U.S. had the same foreclosure crisis in 1998. The only
difference was there was less publicity because there were
less public traded companies involved that went out of
business. So Wall Street was not affected like it has been
recently. During this time of banking institutions going
out of business, the Feds have lowered rates dramatically.
It's a great time to buy a house if you have decent credit.
So what if you don't? Maybe you are unsure where you stand
with your Credit. There has never been a better time to get
on top of your Credit Report than now. It really stinks to
rent, drive a junk car or get denied for credit when you
really need it because of your Credit Score. I personally
think 2008 is a time to step back look at your personal
finance and please don't try to keep up with the Jones,
cause you are not going to take it with you. Just remember,
good credit, good health and low debt is the path to
prosperity in 2008. It really looks like Banking will
tighten up over the next 3 years and the lending will never
be the same again.
So if you want a piece of the American dream, please stay
on top of your personal credit. Remember "Your Credit is
your Life."
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About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.
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