by Jaynee Sasso
Current tightening lending standards require now more than ever that consumers become familiar with the components of their credit score. Many people are still experiencing a free fall in their personal finances and need to know what the next steps are toward the road to recovery. The repercussions of the economic crisis have prompted lending institutions such as Fannie Mae to raise their minimum credit score requirements from 580 to 620. This can be troubling news for those who are still digging themselves out from under a pile of unpaid bills, bankruptcy and foreclosure.
However, you must be assured that it is possible to make a full recovery. Knowledge has always been a key to future success. Your credit score is simply a snapshot of your credit history at one point in time. Your score can fluctuate based on how quickly new and outdated information is added or removed from your credit report. It is extremely important that you monitor your credit report to ensure that the information being reported is accurate. I suggest requesting your report from all three credit reporting agencies at least twice a year or more frequently if you plan on applying for credit in the near future.
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