Should you worry about your credit score during a Recession?

You cannot turn on the TV, surf the web or listen to the radio without hearing about credit reports and credit scores. You might wonder what the buzz is all about. With the current tightening up with lending, your credit scores have become more important than ever. Let’s assume you want to get a home, and you have not checked your credit report in years. You probably don’t have the personal assurance that your credit report is what is should be. Maybe you know you have had some blemishes on your credit report. What ever the case is, you need higher credit scores these days to get approved for any loan.

You might notice car dealerships and all sorts of businesses going out of business. A lot of these businesses cannot get credit from lenders to continue doing business. So they have no choice but to close their doors. So just imagine if you have low credit scores or a credit report littered with collections what your answer is going to be with any creditor.

If banks have learned one lesson from the recent loan nightmare, that lesson is your credit score means a lot. In the past you could get loans with low credit scores, but that is not the case anymore. With the recession taking place you can be for certain that banks cannot afford to lend money to borrowers that are high risk. High risk borrowers are borrowers with low credit scores.

During a recession you might find yourself needing a loan, and with the bar being raised on credit report and credit score requirements you can be for certain that your credit score will need to be as high as possible to get a loan. Some banks will not lend to you unless your fico score is 680 or above.

If you are not for sure what is on your credit report or maybe you have no idea what your credit scores are. I would recommend getting a copy of your credit report now. Be a educated consumer about your creditworthiness.

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