The Importance of Credit in Today’s Financial World

John Heath - Directing Attorney for Lexington LawCredit is your most important financial resource.  Pick up any newspaper or magazine today and you will undoubtedly spot headlines that discuss the use or misuse of credit.  Any smart consumer knows that big-ticket items (think cars and houses) will always be just out of reach without good credit, or a mountain of cash. Even small purchases are often cheaper when you use your own good credit to buy them.  Stores offer discounts for buying with credit instead of cash and sometimes provide promotions and coupons to their preferred credit card holders.  The bottom line: good credit saves you money and gets you the things you need and want.

Decades ago, the extension of credit was a “face to face” affair where a prospective borrower would meet personally with a bank or business, such as a grocer, and credit would be granted or denied based upon multiple factors. Prospective lenders often considered an applicant’s background, employment history and personal circumstances. They might even factor in extended illnesses, deaths in the family, or other unforeseen life events.

Those days are long gone. Bankers don’t sit down with consumers anymore. Lending decisions are based on a three-digit credit score reported by one or more of three very large credit reporting agencies, Transunion, Equifax, and Experian. This score rarely gives prospective lenders a complete picture of an applicant’s creditworthiness.  In fact, the only time your personal life shows up on a credit report is when, for example, a health issue leaves you with unpaid bills that appear as delinquencies on your credit report and lower your credit score.

This changing landscape makes it more important than ever for consumers to have a mouthpiece to tell their side of the story.  Lexington tells your story – your whole story.  We are here to listen to your side and then aggressively advocate for you and your credit rights.  We provide a solution to assist you, the consumer, to better credit worthiness.