CREDIT CRUNCH!!!

Wow November 1, 2008 already!!! What a year it has been too, the house market taking a dive, stock market taking a dive, there was something else ummm oh yeah the CREDIT CRISIS! We have all heard these sayings I am sure Credit Crunch, Credit Freeze, Credit Meltdown, Bad Credit Scores, Good Credit Scores, Free Credit Reports, Credit this and Credit that, but what does it all really mean? Well that is the million dollar question and has one answer, the answer is IT DEPENDS I know, I know you think I am crazy. The truth is that regardless of what you have heard everyone’s credit is different and I mean everyone! For example lets say person #1 has a 720 credit score and person #2 has a 720 credit score they should both be able to get the same things right? WRONG just because they have the same credit scores does not mean they are equal. There are a lot of other factors that go into consideration. The first thing is payment history, then Debt Ratio which is the amount of credit available verses the amount of credit used. For example let’s say they both have a credit card with $5,000.00 credit limit. #1 has $4000.00 charged on his/hers, and #2 has $1250.00 on his/hers. #1 Debt Ratio is 80% on there credit card and is well over the suggested 30%. On the other hand #2 Debt Ratio 25% which is a littler below the suggested 30%. That means if #1 would get there credit card below 30% there credit scores would actually go up more than the 720 credit score they currently have which would give them better buying power. One last thing look for the facts on Did you know outstanding credit balances below.