Credit scores can impact our lives and what, when or if we can purchase something.  It hit home again today when some prospects I was starting to work with learned they cannot purchase a home for 3-more years!  Ouch!

FICO Credit scores are a mathematical complilation of all a person's credit history.  It takes into account the amount of credit one has and how reliable they are in paying back obligations.

Often people forget about their FICO score and how our actions are being recorded.  Paying your mortgage late even when negotiating a short sale of your home will have impact for 3-years.  What that means is once the payment is 30-days or more late, it will take 3-years of paying on time to compensate!

Dan Green writes a very informative post about how much certain delinquencies can impact your credit score.  Read what he says about Credit Score here.

These facts are important to understand as one struggles with trying to make ends meet.  The lower your credit score the higher your mortgage rate.  The higher your mortgage rate the less home you can purchase.

Protect your credit by being proactive.  If you can afford something today, save up for it and if you still want it, buy it later when you can afford it.  Digging out is always easier when you don't dig in so far in the first place.

When it comes to consumerism, the new reality is "less is  more."  When it comes to your credit score "more is less."  And that is probably a good thing.

Enjoy your weekend!