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Credit scores on the minds of lenders, consumers
By Oscar Monfort on Apr 17th, 2010
Both lenders and consumers may be paying closer attention to credit scores as the loan market is tight.
For lenders, a credit score is used with other factors to determine whether a consumer's financial situation is too risky to warrant granting a loan. As the credit crunch continues, some consumers are taking a closer look at their scores to see where they stand.
In a recent column for the Washington Times, Henry Savage noted there are a number of things that could lower a person's score. The president of Alexandria, Virginia-based PMC Mortgage said late payments on mortgages can have a severe effect on a credit score.
"This is the kiss of death," Savage wrote. "The more recent the late payment and the later the payment is made, the more it will bring down your score."
Being late on other payments, such as those for credit card debt, can also dent a consumer's credit score. People who can't seem to stay on top of their credit card accounts may consider a debt management plan, which may help by organizing debts into one bill that should be easier to track.
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