Thursday, December 10, 2009

The Credit Miracle Worker at Frank Myers Auto Maxx Presents: Do You Know Who Has Access To Your Credit?

Hey! My name is Rich Little and I'm the “Credit Miracle Worker”. I’m back again with a question for you. Do you know who has access to your credit information? Did you know that the laws and guidelines that determine who can access your credit information are weighed in favor of the creditor or business owner to protect them from losses caused by defaults such as late payments, partial payments or no payments at all? It’s very important that you know what the rules are and what rights you have when it comes to someone accessing your credit information.

When you take out an insurance policy, apply for a loan, make a purchase on credit or even fill out an application to rent a home or apartment, the creditor (or landlord or insurance agent) involved has the right, under most circumstances, to look at your credit report. This includes auto dealerships and mortgage companies. Potential employers may request your credit information as part of their hiring process, but in most cases, they cannot do so without your permission. If you apply for a job where you will be dealing with large amounts of money or are solely responsible for a large budget, the employer may insist that you agree to allow them access to your credit information.

Unfortunately, your permission is not required when inquiries are made as part of a pre-approved credit offer.

The most unfortunate aspect of having poor credit is you may have difficulty securing a loan and you’ll pay higher interest rates if you get that loan. Over the course of a home mortgage for example, higher interest rates brought on by poor credit and a low credit score means higher monthly payments and the fact that you may end up paying as much as an additional $150,000 for your home over the course of the mortgage. That’s why me and my team of Credit Miracle Workers at Frank Myers Auto Maxx can help you restore your credit and put you in a position to secure the best possible rates when purchasing large ticket items such as a home or vehicle.

In addition, you may have to pay higher interest rates for credit cards and auto loans and perhaps have to place a cash deposit to secure that credit card and come up with a larger down payment for that auto loan. Even utilities such as power, water, cable and telephone service may require a larger security deposit. Frank Myers Auto Maxx can help you avoid these additional expenses.

Poor credit can also cost you in the sense that it is much more stressful to deal with all the issues surrounding your personal finances when you have credit problems

Here are some of the challenges you’ll face if you have poor credit:

  • Obtaining an auto loan

  • Getting a mortgage

  • Renting an apartment, house, condo or office

  • Securing a credit card or line of credit

  • Taking out a life or auto insurance policy

  • Paying bills online

  • Utilities (security deposits)

  • Renting a car

  • Employment history and securing work

Keep an eye out for my next post because I'll share with you how to enter the dispute process with the credit bureau. It may not be as hard as you think.