Don’t Neglect Your Credit

It doesn’t take much to ruin one’s credit standing — and that’s one area where reverse mortgages can be very helpful.

I get a lot of email from people who have missed a payment by a few days. Such misses are a problem and are not a problem. To many credit card issuers, missing a payment deadline by even a few minutes is grounds to hike rates and assess penalties. For credit report purposes it’s nothing — credit reports only note payments that are at least 30 days overdue.

All of which brings us to reverse mortgages. Reverse mortgages are not dependent on credit scores, income or employment. Instead, they are asset-based mortgages. If you have equity you have grounds to get a reverse mortgage.

That said, good credit is always what you want. Make a point of making all payments on time and in full. You’ll reduce borrowing costs and creditors of every stripe will be more eager to deal with you.

This entry was posted on Sunday, December 16th, 2007 at 3:31 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.