Obsessed By Numbers
November 15 2017 Posted by Mary Poburan
Unfortunately in today’s society we are obsessed by numbers. The bigger the better right? Size matters? Well, in the lending world a number that seems to get a lot of attention (too much in my opinion) is the Credit score or Beacon score as we on the inside like to call it. As consumers become more aware, I find that many of my meetings begin with, “I know my credit score and it's good”. That might be true but it could also be irrelevant. Unfortunately the consumer is hearing too much noise about SCORE. I explain to my clients that the credit reporting system is a beast no one can tame. No matter how much we attempt to assign a score factor to an activity it is impossible. There is often no rhyme or reason to what increases or decreases a score. Yes, trends will definitely affect the score but I have seen clients with 'high' scores that actually have some credit items of concern and those with unusually “low” scores that technically have good credit. It is true that lenders have certain minimums for granting credit and sometimes better rates are given to some with credit scores over a certain level but at the end of the day I am less concerned with your score than I am about how your overall credit appears. That is why we, as an industry, have to try and focus away from the 'number' and look at the substance of the credit. The less we talk about number the less obsessed clients will be with any discrepancies and focus on building a healthy well rounded credit history. It’s kind of like weighing yourself daily. The scale will fluctuate but really all that matters is how your clothes fit :) Happy Wednesday! If you want to discuss how to strengthen your credit get in touch with me today.