Credit Score Diaries: Journey to an 850 Credit Score

Friday, November 23, 2007

The Credit Bubble Has Burst

On the news many are talking about the Housing Bubble, but few are talking about the Credit Bubble having burst, and what that means for consumers. There is a credit bubble when lenders make it easier and easier to get home loans, but then all of a sudden "tighten their belt", requiring more down payment from home buyers, more paperwork, and a higher credit score.

In October 2007 my real estate broker told me that the loan brokers she works with now require as much as 20% - 25% down payment if you are self employed or don't have the highest credit score. This is quite a change from requiring no down payment just six months ago!.

When lenders "tighten" their belt, one way to win is to have a high credit score. On this site we have a best-selling book on how to raise your credit score in just 24 hours: "Improve your Credit Score in 24 Hours".

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