Your credit score could make or break you in 2008. With all the foreclosures and defaults on credit cards, banking guidelines are getting tough. During the “Real Estate Boom” just about anybody could get a loan. Mortgage companies were just giving money to anyone that came along. Someone pulled the wool over the eyes of Wall Street. I personally was doing loans that I knew would default, but if I had denied the loan, they would have went somewhere else. The guidelines where so liberal that anyone with a job could have got a mortgage. Even credit card banks were extending credit to high risk borrowers. Now our banking and lending institutions are in a major clean up transition. I have noticed that some of the new guidelines for lending this year are getting to the point where good credit will only be allowed to get loans. It’s amazing how Bankers swing from the left to the far right to make an adjustment when it comes to Credit Risk. Freddie Mac and Fannie Mae of course are in business to make money, so it’s really like a cycle. Underwriting guidelines will tighten up, and then they will loosen back up.

So the question is, how long will it take for Creditors to loosen up on credit risk guidelines? Believe it or not, the U.S. had the same foreclosure crisis in 1998. The only difference was there was less publicity because there were less public traded companies involved that went out of business. So Wall Street was not affected like it has been recently. During this time of banking institutions going out of business, the Feds have lowered rates dramatically. It’s a great time to buy a house if you have decent credit. So what if you don’t? Maybe you are unsure where you stand with your Credit. There has never been a better time to get on top of your Credit Report than now. It really stinks to rent, drive a junk car or get denied for credit when you really need it because of your Credit Score. I personally think 2008 is a time to step back look at your personal finance and please don’t try to keep up with the Jones, cause you are not going to take it with you. Just remember, good credit, good health and low debt is the path to prosperity in 2008. It really looks like Banking will tighten up over the next 3 years and the lending will never be the same again.

So if you want a piece of the American dream, please stay on top of your personal credit. Remember “Your Credit is your Life.”

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